The takings of Bulgargas and Himco JSCo. are announced for state takings in the Law on the State Budget, said the Minister of Industry Kliment Vuchev. The same ministry intends to create an Investment Fund in industry. Through it the high interests on credits of the commercial banks will be avoided.
Source: Other (19.06.1995)

The Council of Ministers will exercise its owner rights relating to Neftochim Ltd. directly. So far the state refinery was kept in subjection of the Ministry of Industry. Not long ago the Government took the managing of Bulgargas Ltd. which was in the system of the Enargetics Committee till this moment.
Source: Other (30.06.1995)

Chimco JSCo. will pay its obligations to Bulgargas by the end of 1998. This is laid down in the business programme of the company for 1995-1998. The obligations of the enterprise to Bulgargas will be collected as is envisaged by the Law on the State Budjet.
Source: Other (21.07.1995)

Chimco SPJSCo., located in Vratsa has reduced its debt by 35 per cent (BGL 467 million) since the beginning of the year. After the cancellatiuon of the contract signed by the ex-cabinet in the late 1994 the plant proved to be able to overcome its difficulties by itself. The above contract provided for the assumption of Chimco's liabilities to Bulgargas by Multigroup.
Source: Other (31.07.1995)

Rousse firms have debts of BGL 94 million to Bulgargas. Their obligations to the National Electric Company amount to BGL 3.37 million. Obligations of BGL 229 000 have been collected with the help of sixteen court's executive lists.
Source: Other (24.08.1995)

Chimco will pay its debts toward Bulgargas by the end of November, said the Director of the company Mr. Kiril Petkov. Till this stipulated term Chimco will pay BGL 107 million. The company has already paid about BGL 1,145 billion. A new interest plan will be prepared after the paying of the sums in November.
Source: 24 chasa (27.09.1995)

The Arbitral Court with the Bulgarian Chamber of Commerce rejected the claim of Bulgargas for anulation of the cession with Credit Bank and Discount House.
Source: Other (02.10.1995)

Overgas, Bulgargas and Bulrosgas are the major shareholders in the newly-incorporated company Montana gas. The municipal authorities of Montana participate with 10% of the capital of the new company.
Source: Standart (17.10.1995)

The amendments in the documents of Bulgargas JSCo were registered. Ivan Zhabinski, Ilia Shtarbanov, Zornitsa Stamboliiska, Dimitar Donchev, Slavcho Ivanov, Angel Popov and Alexander Belovezhdov are no longer members of the board of directors.
Source: State Gazette (07.11.1995)

Bulgargas will limit the supply of petrol to the cement-producing plants Granatoid and Devnenski Tsiment because they have not paid their obligaions regularly.
Source: Standart (08.11.1995)

Changes in the supervisory board of Topenergy were voted yesterday.The ex-chairman of the Committee of Energy Nikita Shervashidze, the vice-president of Multigroup Ivan Kolev and the director of Minstroy Mining were discharged. The newly-elected members are Roumen Ovcharov, Borislav Georgiev, Krasimir Nikolov. The capital of the company will be increased up to BGL 120 million. Major shareholder remains Gasprom holding 50% of the capital. Bulgaegas holds 23,1% of the capital of the company and it is allowed to buy only two shares out of the capital increase. The rest of the shares will be allocated to the new shareholders: Bulbank, First Private Bank, Overgas, Multigroup and Himimport. The supervisory board will decide in a month about the amount of the shares allocated to each new shareholder.
Source: Pari (10.11.1995)

Multigroup and Overgas receive share of 8,3% out of the bulgarian stake in Topenergy. First Private Bank will hold 3,15%, Bulbank - 3,15%, Himimport - 2%. The rest shares will be possessed by Bulgargas.
Source: 24 chasa (13.11.1995)

Himco began the payments of its debt toward Bulgargas. The chemical plant has obligations of BGL 1,2 billion which have to be paid by the end of January 1997.
Source: Other (15.11.1995)

Bulgargas canceelsd its cession contract with Himco. The decision is taken on the strenght of Art. 16 of the contract.
Source: Pari (01.12.1995)

The Council of Ministers appointed Peter Sabev the new executive Director of "Bulgargas". Being on this position Peter Sabev will represent "Bulgargas" in the board of managers of "Topenergy".
Source: 24 chasa (11.12.1995)

The State Savings Bank is among Bulgargas' big debtors. Different companies owe Bulgargas BGL 35 bln. The company initiated legal proceedings against its debtors.
Source: Standart (13.12.1995)

TS Bank JSC reported a profit of BGL 186 million for the first 9 months of 1995. At the moment the bank's capital amounts to BGL 1,330 billion - BGL 500 million of them are deposited in long-term assets. Shareholders of the bank are 700-800 legal entities and natural persons. The bank owns shares of Hebrosbank JSC, Expressbank JSC, Central Cooperative Bank JSC, Bulgarian Investment Bank JSC, Biochim JSC, Bulgarian-Russian Investment Bank JSC.
Source: Other (20.12.1995)

"Bulgargas" ceased without notice the gas supply to "Neochim" - Dimitrovgrad. As a result the production of some of the products of the company is suspended.
Source: Pari (04.01.1996)

The alterations to the Board of Directors of "Bulgargas" were published in the State Gazette. Angel Popov is expeled from the board. New member of the board is appointed Peter Sabev.
Source: Other (09.01.1996)

The capital of the Bulgarian-Russian gas Company "Topenergy" is increased from BGL 60 mln up to BGL 120 mln. 24.9 per cent of the capital is split up between "Multygroup", "Overgas Inc.", First Private Bank and "Chimimport". The state-owned company "Bulgargas" decreased its participation from 50 per cent down to 25.1 per cent.
Source: Other (10.01.1996)

The documentation for the registration of the Bulgarian-Russian company "Gasenergo" is submitted to the court. The company will develop regional projects in the field of gas energetics and the construction of new power-plants. The Bulgarian party will have 51 per cent stake in the capital of the company. Shareholders of the company are "Nove Holding", TSBank, CB "Slavjani", Aleksander Belovezhdov (former member of the board of "Bulgargas") and some other natural persons.
Source: Other (10.01.1996)

The management of "National Gas Company" will discuss the approval of new shareholders, said Ivan Hlebarov executive director of one of the major shareholders "Veles Holding". Other shareholders of the "National Gas Company" are "National Electric Company", "Minstroi Holding", "Bulgargas", "Balkanbank", TSBank, "Credit Bank", CB "Slavjani", "Overgas", "Termico", "Energia i Ekologia". The "National Gas Company" is anticipated to gasificate the towns of Dobrich, Vratsa, and Rousse by the end of 1996.
Source: Standart (19.02.1996)

"Kremikovtsi" has increased its sales by 25 per cent in 1995, said Atanas Bogdanov executive director of the metallurgical plant. The company has developed a sinking plan for paying-back its obligations to "Bulgargas". According to the plan, which is approved by the Council of Ministers, BGL 2.345 billion have to be paid-back by instalments.
Source: Pari (22.02.1996)

The Council of Ministers increased the membership of the board of the directors of Bulgargas from 7 up to 9 members. The CEO of the company Petar Tsonev was disharged from his office. New members of the board were appointed Nedelcho Popov - Councellor at the Council of Ministers, Ivan Peichev and Metody Vachev.
Source: Trud (12.04.1996)

Kremikovtsi will pay back its obligations to Bulgargas in steel, says Atanas Bogdanov executive director of the metallurgical plant. The present obligations of the state joint stock company Kremikovtsi to the gas company amount to BGL 2 billion.
Source: Standart (22.04.1996)

In April 1996 Bulgargas has sold gas , USD 93 per 1000 m with expenses of USD 116-200. Bulgaria has a debt of USD 700 million according to the Iamburg agreement which is not observed now.
Source: Trud (22.05.1996)

The Council of Ministers demands the Parliament to give, by a vote, an interpretation of those of the texts from the Law on the State Budget that define the claims of Bulgargas from Chimco and Kremikovtsi as "state claims". Up to now Chimco has paid the budget BGL 1.5 million.
Source: Kontinent (03.06.1996)

The Arbitration Court rejected Bulgargas' claim for the cancellation of the cession contract with Credit Bank and Discount House.
Source: Kontinent (21.06.1996)

The report of the Anticorruption Commission for the cession between Bulgargas and the Credit bank and Discount House will be put forward for discussion in the Parliament till the end of the week.The prosecution office will be also approached with an application for investigation against the officials, who are responsible for the signing of this contract.
Source: Other (26.06.1996)

The Supreme Court will investigate again the law suit Chimko versus Multigroup because of the cession of the debts of Chimko to Bulgargas. The law suit will be re-investigated because of the new circumstances, which in this case is the amendment in the Budget Law.
Source: 24 chasa (23.07.1996)

The gross profit of the state-owned Chimko JSC amounts to BGL 464 million for the first half of 1996. According to data of the enterprise, it is ready to receive its current payments. The chemical plant has paid the whole principal of BGL 1252 million and BGL 656 million of the interests to the state-owned Bulgargas JSC. BGL 574 from the interests are left for payment.
Source: Other (29.07.1996)

The Prime minister Jean Videnov will demand from the government an increase of the capital of "Topenergy" from BGL 120 million up to USD 5 million. The other suggestion, which will be discussed is the transfer of the part of the First Private Bank in "Topenergy" to "Bulgargas". The bank held 3,2 per cent of the shares of "Topenergy".
Source: Kontinent (15.08.1996)

The Council of Ministers does not object against the increase of the capital of "Topenergy", which will be submitted on the general meeting of the company in September. The Ministers decided that the state-owned "Bulgargas" JSC takes the shares of the First Private Bank in the gas company. The Government decided to open a procedure for granting of a concession to the company.
Source: Pari (16.08.1996)

The receivables of the state-owned "Bulgargas" JSC for the delivery of gas will be paid by the state, after the voting of the Law for the State Budget by the President of Bulgaria. In this way the cession contract for the transfer of the receivables to Multigroup remains invalid.
Source: Kontinent (12.09.1996)

"Bulgargas" fulfilled the first stage on the delivery of Russian natural gas for Greece. This is the second state after Turkey to receive Russian natural gas across Bulgaria.
Source: Pari (19.09.1996)

80 per cent of the cash incomes from sales of detatched parts of the state-owned "Mikroelektronika" JSC (Botevgrad) will be returned to the enterprise, reported the Privatisation Agency. The money will be spent on payments to the creditors- the United Bulgarian Bank JSC, the state-owned "Bulgargas" JSC and "Elektrosnabdiavane" (Botevgrad).
Source: Standart (02.10.1996)

"Topenergy" will invest USD 570 million in the construction of a new 270 km gas-main from Russia to Turkey and Greece. "Bulgargas" will operate the equipment.
Source: Trud (09.10.1996)

The state-owned "Chimko" JSC (Vratza) paid BGL 1,225 billion on an interest on its debt to the state-owned "Bulgargas" JSC. The principal of BGL 1,252 billion was paid in the end of 1995.
Source: Pari (14.10.1996)

The American company "American Standard Inc" will invest USD 2 million in the constructing of a gas main for industrial needs in the town of Sevlievo. "Bulgargas" has agreed that the gas main meets industrial and daily wants. The American company is owner of 89 per cent of the shares of "Vidima Ideal".
Source: Kontinent (23.10.1996)

The decision for the granting of concession to "Topenergy" is delayed till the beginning of November 1996. The Minister of Energetics Roumen Ovcharov suggests that 70 per cent of the gas mains get transferred to "Topenergy" and the remaining part remains in "Bulgargas".
Source: Standart (28.10.1996)

The state-owned "Chimko" JSC won the law suit on the contract for granting a cession against "Discount House" JSC and "Credit Bank" JSC. The Supreme Court adjudged that "Multigroup" must pay the expenses on the law suit, which amount to BGL 21 million. This law suit is a result of an application of "Chimko" against a decision of the Vratza District Court, which enacted that "Bulgargas" had to pay BGL 1 billion to the 2 companies of "Multigroup".
Source: Pari (19.11.1996)

The state-owned "Bulgargas" JSC will sell its shares in "Montanagas" JSC. The reason is disagreement with the other major shareholder "Overgas" Ltd. At the present moment the Montana Municipality is looking for new shareholders and investors. "Montanagas" JSC was established in 1994. Among the shareholders are "Bulrosgas" with 30 per cent of the shares and the Montana Municipality with 10 per cent.
Source: Kontinent (21.11.1996)

Three terrains of the property of the state-owned "Belopal" JSC with stores, machines and equipment in the total amount of BGL 352 million will be sold on an open auction on the 13th of December 1996. This measure has been imposed because of unpaid debts of the company to the state-owned "Bulgargas" JSC.
Source: Pari (03.12.1996)

The Managing Board of the state-owned "Bulgargas" JSC decided to construct a gas main near to the town of Sevlievo. The American corporation "American standard" will grant credit without interests for this project in the amount of USD 2,300. The construction will have begun till the end of 1996.
Source: Kontinent (05.12.1996)

The Bulgarian Constitutional Court recognized anticonstitutional the amendments on the Law on the Amendment and Comlementation on the Law on the State Budget. The amendments recognized all the debts of juridical entities from sales of natural gas, supplied on international agreements by the state-owned "Bulgargas" JSC. The decision of the Constitutional Court will enforce a re-investigation of the law suit "Multigroup"-"Chimko".
Source: Pari (11.12.1996)

The debts of the state-owned "Toplofikazia' JSC (Sofia) to the state-owned "Bulgargas" JSC amount to BGL 7,8 billion.
Source: Pari (16.12.1996)

The state-owned "Agropolichim" JSC (Devnya) owes interests in the amount of BGL 2 billion to "Bulgargas" JSC. The principal amounts to BGL 220 million.
Source: Pari (04.01.1997)

The state-owned "Bulgargas" JSC and CB "Biochim" JSC will participate in the establishment of a Bulgarian-Russian company for barter payments of the natural gas. It is anticipated that Bulgaria and Russia will hold equal parts of the shares of the company.
Source: Trud (13.01.1997)

The uncollectable credits of the state-owned "Bulgargas" JSC are in the amount of BGL 52 billion. Among the major debtors of the company is the Atomic Power Station "Devnya" with BGL 1,9 billion. The company has signed contracts for the payment of the debts of "Lecko-Co" (Radomir) and "Kamet" (Pernik).
Source: Pari (13.01.1997)

The Belgium company "Solvey" and the Thermal Power Station "Devnya" will sign a 15-year agreement for the delivery of technoligical steam for the state-owned "Sodi" JSC (Devnya). The Belgium company insists on an increase of the share of the thermal energy made of coal because of a decrease of the dependence of "Bulgargas".
Source: Pari (20.01.1997)

The Executive Director of "Bulgargas" JSC, Mr. Petar Subev was dismissed from the Board of Directors at his will. The Council of Ministers decided that "Bulgargas" enters the Supervisory Board of CB "Biochim". "Bulgargas" intends to establish a joint-venture with the Russian company "Invest Market" for gas-supply for goods.
Source: Pari (24.01.1997)

"Bulgargas" JSC will stop the supplying of natural gas because of unpaid debts of 3 enterprises of the Sliven District: "Kvartz" JSC, "Bulgartzvet-Sliven" JSC and "Rodopa-Sliven" JSC. The plants owe the amount of BGL 620 million.
Source: Trud (30.01.1997)

The Members of the Board of the Directors of the state-owned "Bulgargas" JSC were decreased from 9 down to 7, according to an order of the Council of Ministers. From the Board of the Director were dismissed Roumen Ovcharov, Ivan Peichev, Nedelcho Popov and Stoyan Kyuchukov. On their places were appointed Angel Semerdzhiev, Pavel Marinov and Alexander Belovezhki.
Source: Kontinent (31.01.1997)

The state-owned "Bulgargas" JSC will decrease the supplies of natural gas to its major debtors. These are the following state-owned enterprises: "Agropolichim" JSC (Devnya), "Neftochim" JSC (Bourgas), "Kremikovtzi" JSC (Sofia), "Antibiotic" JSC (Razgrad), "Agrobiochim" JSC (Stara Zagora) and "Plevenski Tziment" JSC (Pleven).
Source: Kontinent (31.01.1997)

The Ministry of Energetics will become principal of the state-owned "Bulgargas" JSC and the Ministry of Industry-of the state-owned "Neftochim" JSC.
Source: Pari (07.02.1997)

The Council of Ministers will have the rights of an owner of the capital of the state-owned "Bulgargas" JSC, decided the Council of Ministers..
Source: Pari (14.02.1997)

The Council of Ministers appointed new Board of Directors of the state-owned "Bulgargas" JSC. Its members are: Petar Subev-former Executive Director of the company, Vasil Philipov-chief expert of the company, Penko Dimitrov-chief jurisconsult of the company, Stefan Stavrev-Deputy Minister of Industry, Hristo Gurov and Emil Milkov from the Ministry of Energetics.
Source: Pari (18.02.1997)

The state-owned "Bulgargas" JSC started the construction of the national gas main in the neighbourhood of Sevlievo. The design and the construction will cost USD 2,4 million.The money is granted by "American Standard Inc.".
Source: 24 chasa (19.02.1997)

The state-owned "Bulgargas" JSC will gradually stop the supply with natural gas to companies which have not paid their bills for January, 1997. These are the state-owned: "Chimko" JSC (Vratza), "Kremikovtzi" JSC (Sofia), "Antibiotic" JSC (Razgrad) and "Latex" JSC (Byala).
Source: Pari (21.02.1997)

Stefan Stavrev was elected Chairman of the Board of Directors of the state-owned "Bulgargas" JSC. The other members are: Petar Subev-Dep. Chairman, Penko Dimitrov, Vasil Philipov, Hristo Burov, Emil Milkov nd Hristo Stankov. The company is represented and managed by the Executive directors Petar Subev and Vasil Philipov.
Source: Kontinent (21.02.1997)

"Overgas" Ltd bought the shares of the state-owned "Bulgargas" JSC in "Montangas" JSC for the amount of BGL 300,000. In this way "Overgas" Ltd became an owner of 64 per cent of the shares of the company. The remaining shares are owned by "Bulrosgas" Ltd and the Montana Municipality.
Source: Kontinent (24.02.1997)

The German holding "Zimmermann&Janseen", the state-owned "Bulgargas" JSC and "Gemet" JSC established a Bulgarian-German company for the production of gas fixtures.
Source: Pari (06.03.1997)

CB "Biochim" and "Bulgargas" JSC have become shareholders in the Bulgarian-Russian trade company "Intertrust Investment Trade". The company has to service trade between both countries and the export of fuel from Russia. The other shareholders in the joint-venture company are the Russian companies "Stolichnii sberezhnii Bank" and "Inter Investmarket"
Source: Banker (17.03.1997)

The state-owned "Bulgargas" JSC stopped the gas supply for the state-owned "Neftochim" JSC because of its debts to "Bulgargas", which amount to BGL 14 billion.
Source: Pari (21.03.1997)

The Supreme Court did not took into consideration the appeal of "Multigroup" JSC on the law suit against the state-owned "Chimko" JSC (Vratza). The state-owned company will not pay BGL 1 billion according to the cession contract from September, 1995, providing for gas supply through the state-owned "Bulgargas" JSC.
Source: Kontinent (04.04.1997)

The interim government decided to introduce a 4 per cent retail surcharge for natural gas distributors instead of pegging the gas price to the fuel oil price as before. Our proposal was for a minimum of 6 per cent, said Mr. Vasil Phillipov - Executive Director of "Bulgargas" JSC.
Source: Pari (20.05.1997)

The loses of "Bulgargas" are in the amount of USD 300,000 per day because of the high price of the supply of natural gas and the fixed from the Government 4 per cent profit rate. The company will bring a tender in the Council of Ministers for a change of the fixed profit.
Source: 24 chasa (09.06.1997)

The General Meeting of the shareholders of "Agrobiochim" JSC voted a new company's statues. Mrs. Galinka Filipova, Mr. Simo Michailov a Ministry of Trade and Tourism representative, Mrs. Anna Sabeva - Executive Director of First East International Bank JSC -, Mr. Stefan Spiridonov a company's representative, and Mrs. Vessela Kaleva a Ministry of Finance representative were elected members of the new Board of Directors.
Source: Pari (21.07.1997)

The Council of Ministers ordered to the representatives of the state-owned National Gas Supplier "Bulgargas" JSC to propose to the remaining Bulgarian shareholders - Chimimport JSC, Multigroup JSC, First Private Bank JSC and Overgas JSC - to transfer their shares to Bulgargas at the forthcoming General Meeting of Bulgarian-Russian "Topenergy" JSC. If the companies refused to transfer their shares to Bulgargas, It will convened a new General Meeting for ceasing the activity of "Topenergy" JSC. The next step will be an establishment of new Bulgarian-Russian join-stock company for fuel and power supply.
Source: Pari (25.07.1997)

The Council of Ministers dismissed the Chairman of the Power Committee Mr. Georgi Stoilov. Mr. Ilian Shilyashki is appointed in his place. The Power Committee is authorized with the Government's order to control directly the National Electricity Company and the National Gas Supplier "Bulgargas".
Source: Kontinent (25.07.1997)

In late August or early September 1997 will start a meeting between representatives of Bulgargas and Gasprom on the quantities of gas supplies to Bulgaria, reported Deputy Prime Minister Mr. Evgeni Bakurdzhiev.
Source: Pari (05.08.1997)

"Bulgargas" SPJSC has transited the first consignments of natural gas for Mazedonia. The total quantity of gas to transit through Bulgaria is 30 million cubic metres.
Source: Democracy (03.09.1997)

"Chimimport" JSC has agreed to sell its shares in "Topenergy" JSC to the state-owned enterprise "Bulgargas" JSC, said the Vice-Premier Mr. Evgeni Bakurdzhiev. According to the Deputy Director of "Chimimport" JSC, the prices of the shares must be fixed.
Source: Kontinent (12.09.1997)

According the Vice-president of "Gasprom" the decrease of the price of Russian natural gas which has imported in Bulgaria is impossible. Russian gas company had agreed the share of the state-owned "Bulgargas" in Bulgarian-Russian company "Topenergy" to be increased up to 50 per cent.
Source: Pari (29.09.1997)

The faience enterprise "Han Omurtag" JSC had received after its privatization the amount of USD 100,000 from the follow privatization funds: "Industrial PF" JSC, "Semeen PF" JSC and UBPF "Doverie" JSC. It was reported by the company's Executive Director. The enterprise is paying up debts to United Bulgarian Bank JSC in the amount of USD 250,000 as well as debts to "Bulgargas" in the amount of BGL 326 million at the moment.
Source: Pari (02.10.1997)

A revision of the state-owned company "Bulgargas" JSC found damages in the amount of BGL 536 million in the period December 1995 - February 1996. The damages are a result of barter deals with metals. The Executive Directors Mr. Vasil Philipov and Mr. Petar Subev are responsible for the damages.
Source: Trud (20.10.1997)

"Kremikovtzi" JSC and "Bulgargas" JSC signed an agreement protocol that determines a scheme for payment of the debts of the metallurgic works to "Bulgargas" JSC. The contract obliges "Bulgargas" JSC to decrease the gas-supply if "Kremikovtzi" JSC does not observe the payment scheme.
Source: Pari (22.10.1997)

"Bulbank" JSC, "First Private Bank" JSC and "Chimimport" JSC will sell their shares in "Topenergy" JSC to "Bulgargas" SPJSC.The two banks own 3.2 per cent of the shares each, and "Chimimport" JSC owns 2 per cent of the shares of the Bulgarian-Russian company. The shares will be sold at their face value - BGL 120,000 per 1 per cent of the capital. "Bulgargas" JSC will negotiate also with "Overgas" and "Multigroup" for purchase of their shares - 8.25 per cent of the capital of "Topenergy".
Source: Trud (28.10.1997)

"Montanagas" JSC purchased the municipal company "Toplofikazia", was reported from Montana Municipality. Shareholders in "Montanagas" are "Overgas" JSC - 34 per cent of the shares, and "Bulgargas" JSC - 30 per cent of the shares. The new onwer of "Toplofikazia" will invest DEM 400,000 for reconstruction of gas installations. Another DEM 450,000 will be invested in the gas-main network.
Source: Kontinent (30.10.1997)

"Bulgargas" JSC bought the shares of "Chimimport" JSC, "Bulbank" JSC and "First Private Bank" JSC in "Topenergy", said the Executive Director of "Bulgargas" JSC, Mr. Vasil Philipov. The total debts of consumers to "Bulgargas" JSC are in the amount of BGL 300 billion and the company owes Bulgarian state BGL 80 billion. Among the major debtors are "Kremikovtzi" JSC, "Neftochim" JSC, "Belopal" JSC and "Rubin" JSC (Pleven).
Source: Kontinent (04.11.1997)

"Bulgargas" SPJSC stopped the gas supply to the Bourgas-based metallurgic company "Promet" JSC, as a result of its debts. For the last 4 months "Promet" JSC has debts in the amount of BGL 2 billion. The workers in the enterprise will go on a strike in order to be dismissed the Executive Director, Mr. Lyubomir Lazarov.
Source: Trud (05.11.1997)

The General Meeting of "Multigroup - Bulgaria" JSC decided not to accept the suggestion of "Bulgargas" JSC and not to sell its shares in "Topenergy" JSC at their face value.
Source: Pari (14.11.1997)

At the General Meeting of "Topenergy" JSC was taken a decision for amendments at the Supervisory Board of the company. In the places of Mr. Roumen Ovcharov and Mr. Krasimir Nikolov were elected Mr. Antoan Nikolov and Mr. Roumen Petrov. "Multigroup Bulgaria" JSC decided to sell its shares in "Topenergy" JSC to "Bulgargas" JSC.
Source: 24 chasa (17.11.1997)

"Bulgargas" JSC had claimed in Bourgas District Court to promulgate "Neftochim" JSC insolvent because of the refinery’s debt in the amount of BGL 39.5 billion. According to the Minister of Industry the claim is groundless, because there is an open procedure for privatization of "Neftochim" JSC. Before the opening of the privatization procedure It was announced a 6-months term for bringing of suits against the refinery by its creditors.
Source: Other (25.11.1997)

There is already an agreement between "Kremikovtzi" JSC and "Bulgargas" JSC for periodical payment of the debts of the metallurgic works. Till the present moment "Kremikovtzi" owes "Bulgargas" over BGL 10 billion for gas supplies.
Source: National radio (27.11.1997)

Till November 31 the credits granted by "Bulgargas" JSC were in the amount of BGL 350 billion, said Mr. Ivan Shilyashki, Chairman of the Enregetics Committee. Among the major debtors of the company are: "Neftochim" JSC, "Kremikovtzi" JSC, "Neochim" JSC, "Agrobiochim" JSC, "Agropolichim" JSC, "Alumina" JSC, "Stomana" JSC, "Belopal" JSC. The company has signed contracts for payment of the debts with some of the debtors.
Source: Kontinent (02.12.1997)

Bulgargas continues the negotiations with the companies debtors and the specification of the plans most probably will end in the beginning of the next year, announced the Deputy Director of the gas company Mr. Metodi Vachev. Over the last week the company managed to deal the alternatives for rescheduled payment with 5 of its biggest debtors - Neftochim, Kremikovtzi, Plevenski tziment, Belopal - Beloslav and Diamant - Razgrad.
Source: Capital (06.12.1997)

At the General Meeting of "Agropolichim" SPJSC (Devnya) was taken a decision for a transformation of the company into a JSC. A decision was taken for a one-tier management system. Chairman of the Board of Directors is Mrs. Snezhana Tzvetanova. Members of the Board of Directors are Mr. Ivan Vulchev, Mr. Ivan Dyakov and Mr. Petar Ovcharov. The capital of "Agropolichim" is in the amount of BGL 2,736,635,000. According to the financial report, the debts of the company for 1996 amounted to BGL 12 billion. BGL 7 billion of it are to "Bulgargas" JSC.
Source: Pari (08.12.1997)

"Bulgargas" JSC decided to drop out of "Topenergy" JSC. The reason is that "Multigroup" JSC and "Overgas" JSC have not filed offers for sale of their shares to "Bulgargas" JSC.
Source: Trud (17.12.1997)

"Bulgargas" JSC will drop out of "Topenergy" JSC and will offer its shares for sale, said the Chairman of the Committee for Energetics, Mr. Ivan Shilyashki.
Source: Pari (22.12.1997)

"Bulgargas" SPJSC stopped the gas supplies to its debtors. Among them are "Lovechgas" JSC, "Yambolgas" JSC, "Hebrosgas" JSC and "Gassupply" JSC (Purvomay). The total debts to "Bulgargas" SPJSC are in the amount of BGL 9 billion.
Source: Standart (05.01.1998)

The natural gas stored in Chiren gas-store has increased by 14.5 per cent in comparison with preceding year and already exceeds 1 billion cubic metres, said the Executive Director of "Bulgargas" SPJSC, Mr. Lyubomir Dimitrov.
Source: Democracy (05.01.1998)

"Bulgargas" SPJSC refused that its debts to "Topenergy" JSC get transferred to "Credit Bdnk" JSC. Till December 22nd 1997 the company's debts were in the amount of USD 28,5 million.
Source: Kontinent (05.01.1998)

Over 1000 workers locked the entrance of glass-producing plant "Belopal" JSC (Beloslav) to stop the representatives of "Bulgargas" SPJSC (Sofia) from stopping the gas supply. The privatized plant has a debt to "Bulgargas" in the amount of BGL 2,5 billion but according to the state-owned company, this debt amounts to BGL 4 billion. If the gas supply is stopped this will lead to non-execution of contracts with clients from Italy, Russia, Canada and Germany.
Source: Trud (16.01.1998)

"Bulgargas" JSC demanded before court for a proclamation of "Neochim" JSC insovent because of its debts in the amount of BGL 13,8 billion. At the present moment there is a procedure opened for cash privatization of "Neochim" JSC. Privatization consultant is the American company "Arthur Anderssen".
Source: 24 chasa (23.01.1998)

On September 8th 1997 was signed a contract for gas supply by "Bulgargas" JSC, "Hardland Investment" and "Chimko". According to the Executive Director of "Bulgargas" JSC, Mr. Vassil Phillipov, on February 27th 1997 was signed the first contract by "Bulgargas" JSC, "Hardland Investment", "Neftochim" JSC and "Agrobiochim" JSC. Other contracts have been signed after that because of change in the gas prices.
Source: Kontinent (27.01.1998)

The state-owned gas company "Bulgargas" JSC (Sofia) will not be privatized this year. It is not included in the approved by the Parliament privatization programme for 1998, the Deputy-Premier Mr. Bakardzhiev said.
Source: Pari (23.02.1998)

A new Board of Directors was appointed in the state-owned gas company "Bulgargas" JSC. The Deputy Chairman of Energetics Committee Mr. Kiril Gegov is the new Deputy Executive Director. The other members of the Board are Mr. Antoan Nikolov, Mr. Hristo Kazandzhiev, the company's Chief Lawyer Mr. Iliya Ivanov as well as the current Executive Director Mr. Vassil Philipov.
Source: Trud (26.02.1998)

All Bulgarian shareholders of "Topenergy" JSC - Bulbank JSC, "Bulgargas" JSC, "Overgas" JSC, "Multigroup" JSC and First Private Bank JSC gave their temporary certificates for ownership on their shares to the Board of Directors of "Topenergy" JSC. The Board of Directors will transfer these shares of "Gasprom". It is expected that the former shareholders' representatives will drop out of the company's management.
Source: Democracy (03.04.1998)

The glass-works "Crystal" SPJSC (Pernik) owes "Bulgargas" JSC over BGL 7 billion. That's the reason why the gas supplier claims for the company to be proclaimed insolvent. On April 22, 1998 Pernik Court will pronounce on this claim of "Bulgargas" JSC. On April 15 in the Ministry of Industry was held a meeting between the Deputy Minister of Industry Mr. Stefan Stavrev and the Director of "Crystal" SPJSC Mr. Krum Bozhkov. At the meeting was suggested a sale of some of the assets of the company for payment of its debts. A German investor has shown interest in the glass-works, was reported by the Ministry of Industry.
Source: Pari (16.04.1998)

The General Meeting of "Topenergy" JSC approved the company’s capital restructuring into 100 per cent ownership of Russian "Gasprom". The Deputy-Executive Director of "Gazprom" Mr. Bogdan Bozdzulyak was elected Chairman of the Board of Directors of "Topenergy" JSC. Mr. Sergei Pashin was elected company’s Executive Director. The other members of the Board are: Mr. Yuri Vyahirev, Mrs. Elena Karpel, Mrs. Mira Rosenova, Mr. Yuri Zaitzev and Mr. Boris Posyagin - all representatives of "Gasprom". The new Board of Directors will decide the price on which "Topenergy" will sell to Bulgargas the ground under the transit gas network. This questions will be discuss at the next company’s General Meeting which will be held on June 19, 1998 in Moscow.
Source: Pari (08.05.1998)

On May 13 in Pernik District Court started the law suit for proclamation of glass works "Crystal" JSC (Pernik) insolvent. The claim has been brought in court by "Bulgargas" JSC - this is the only way for the company to receive BGL 5 billion rom unpaid gas supplies. A revision will be made in "Crystal" JSC to be calculated the value of production in the stores, stockpiles of materials, receivables and debts of the Pernik-based company.
Source: Pari (14.05.1998)

BGL 84,855 billion will invest "Bulgargas" JSC in 1998 in connection with government agreements, announced the Deputy Chairman of Energetics committee Mr. Kiril Gegov. The Council of Ministers approved the company's investment program.
Source: Democracy (26.05.1998)

The debts of "Chimko" JSC are in the amount of BGL 50 billion, said the Executive Director of the company Mr. Emanuil Rafailov. BGL 34 billion of them are debts to "Bulgargas" JSC, and the remaining part are debts to creditor banks. The enterprise ended first quarter of 1998 with a loss of BGL 11 billion and at the present moment its losses amount to BGL 17 billion.
Source: Democracy (27.05.1998)

Till the end of March the debts of "Agropolichim" JSC were in the amount of BGL 50 billion. BGL 26 billion of them are debts to "Bulgargas" JSC. Reason for the present state of the company according to its Executive Director Mr. Ivan Dyakov are the high prices of gas and the crisis in this branch.
Source: Democracy (05.06.1998)

"Bulgargas" JSC started to supply with gas "Leco - Co" JSC. The gas supply had been stopped because of debts of the enterprise to "Bulgargas" JSC - BGL 4 billion. The two companies have negotiated a prolonged term for payment of the debt.
Source: Democracy (05.06.1998)

"Bulgargas" JSC appealed before Pleven District Court for proclamation of "Plama" JSC (Pleven) insolvent. The refinery owes "Bulgargas" JSC about BGL 492 million for supplies of natural gas till May 31.
Source: Pari (10.06.1998)

Sofia Regional Court re-appointed the former Chief Accountant of "Bulgargas" JSC Mr. Kiril Ikonomov. The magistrates decided that Mr. Ikonomov had been illegally dismissed by the company's Executive Director Mr. Vassil Philipov.
Source: Trud (11.06.1998)

"Bulgargas" JSC confirmed its claim in Pernik District Court for promulgation "Cristal" JSC insolvency. The glass work's debts to "Bulgargas" JSC are in the amount of BGL 6.2 billion.
Source: Pari (18.06.1998)

Two production work-shops of the state-owned glass plant "Crystal" JSC (Pernik) were closed by order of the Ministry of Industry Mr. Alexander Bozhkov. The promulgated in insolvency plant started to discharge its employees. 335 workers from total 480 employees will be discharged. The plant stopped to work on April 27, 1998 because of unpaid debt to "Bulgargas" in the amount of BGL 5 billion.
Source: Pari (03.07.1998)

There is a possibility for "Bulgargas" SPJSC (Sofia) to become owner of the manure plants, which have debts to the company and for which there is no candidate-buyer, PA's Executive Director Mr. Zahari Zheliazkov reported. "Chimco" JSC (Vratza), "Agropolychim" JSC (Devnya), "Agrobiochim" JSC (Stara Zagora) and "Neochim" JSC (Dimitrovgrad) owe nearly BGL 200 billion for natural gas supplies.
Source: Trud (13.07.1998)

"Norsk Hydro", the buyer of "Agropolychim", and Privatization Agency agreed to finalize the deal for sale of the manure plant for USD 1. "Norsk Hydro" agreed to invest USD 34 million for modernization of the plant. This week "Norsk Hydro" will start negotiations with the enterprise's creditors and "Bulgargas" JSC. The buyer intends to sign a contract for long-term gas supplying of "Agropolychim" JSC.
Source: Capital (13.07.1998)

The state will not form a holding of the manure plants, the Deputy Minister of Industry Mr. Stefan Stavrev reported. The idea for such a holding was reported by the Executive Director of "Bulgargas" JSC Mr. Vasil Philipov. In this holding except for "Bulgargas" JSC had to be included "Chimco" JSC, "Agrobiochim" JSC, "Agropolychim" JSC and "Neochim" JSC.
Source: 24 chasa (15.07.1998)

BGL 5,338 billion is the total amount of the debts of glass-works "Crystal" SPJSC (Pernik), was reported after an assembly of the 13 creditors of the enterprise. Biggest debts "Crystal" SPJSC has to "Bulgargas" JSC - BGL 4,324 billion.
Source: Pari (16.07.1998)

Sofia City Court registered "Topenergy" JSC 100 per cent ownership of the shares of "Gasprom". In April 1998 the Bulgarian shareholders "Bulgargas" JSC, "Multigroup" JSC, "Overgas" JSC, First Private Bank JSC, Bulbank JSC and "Chimimport" JSC sold their shares in "Topenergy" to "Gasprom".
Source: Trud (20.07.1998)

The debts of "Agrobiochim" JSC till June 30 amounted to BGL 58 billion, Mr. Stefan Mihaylov, Executive Director, reported. The chemical enterprise is the major debtor of "Bulgargas" JSC - BGL 20 billion and its debts to NEC are over BGL 7 billion.
Source: Democracy (22.07.1998)

The Minister of Finance Mr. Muravey Radev ordered a complete financial revision in "Bulgargas" SPJSC, the Executive Director Mr. Kiril Gegov stated. In September the government will discuss a project for differentiated prices of the natural gas. "Bulgargas" SPJSC will not be privatized in the next 2-3 years. The company's profit for 1998 is in the amount of BGL 15 billion and its receivables amount to BGL 354 billion.
Source: Standart (23.07.1998)

Inter-institutional group adopted a project for stabilization of the manure plants in Bulgaria. The measures are connected with a change in the prices of natural gas for the producers of manure as well as amendments in the contracts signed with "Bulgargas" JSC.
Source: Democracy (14.08.1998)

The debts of the chemical plant "Chimko" JSC (Vratza) to "Bulgargas" in the amount of BGL 38.2 billion are extended for the long-term period. The other plant’s debts are to National Electric Company - BGL 500 million and to the state budget - BGL 300 million.
Source: Pari (26.08.1998)

"Bulgargas" JSC, Energy Committee and "Shell International Gas Limited" negotiated the start of research operations for construction of gas-main from Turkmenistan through Turkey and Bulgaria to Europe. The research of the gas-main in Bulgaria will be totally financed by "Shell" and will finish after a year.
Source: 24 chasa (09.09.1998)

"Stomana" JSC (Pernik) will stop working in 10 days because of its big debts, announced Mr. Dimitar Dimanov. The company owes "Bulgargas" JSC BGL 20 billion and NEC - BGL 20 billion. Its debts to banks amount to USD 34 million and debts to suppliers are in the amount of BGL 7-10 billion.
Source: Trud (11.09.1998)

"Neftochim" JSC is in 18 place of the 100 biggest European companies. The classification was made by audit company "Deloitte & Touche. NEC is in the 42nd place and "Bulgargas" JSC - in the 62nd place.
Source: Trud (15.09.1998)

The former Executive Director of "Bulgargas" JSC Mr. Vassil Philipov is accused for the non-profitable deal with the off-shore company "Haarland Investment". The deal included import of natural gas against export of nitrogen fertilizers. This was reported by the Director of the Department "Investigating Supervision" in Chief Prosecutor’s Office Mr. Amgel Ganev.
Source: Kontinent (25.09.1998)

Two offers were submitted for purchasing of 77 per cent of the shares of the metallurgical plant "Promet-Debelt" JSC. The applicants are "Neva Holding" JSC (Plovdiv) and Czech "Expandia" JSC. The major requirement to the buyers is to undertake the total plant's debts in the amount of BGL 16 billion. The company owes BGL 13 million to "Industrial Bank" JSC and BGL 3 million to "National Electrical Company", "Water-Supply Company" and "Bulgargas". "Neva Holding" JSC is Bulgarian-Ukrainian company, that imports nuclear fuel to "Nuclear Power-Station" (Koslodui).
Source: Pari (26.09.1998)

On October 12 "Chimko" JSC will start working again after a 100-day cease because of unfavourable market conditions and debts to "Bulgargas" JSC.
Source: Pari (06.10.1998)

"Bulgargas" SPJSC will spend BGL 10 billion on construction of gas mains from Polski Senovetz to Veliko Turnovo. BGL 5 billion must be spent by the end of 1998.
Source: 24 chasa (15.10.1998)

Till September 30 "Bulgargas" JSC has uncollected receivables of BGL 356 billion, reported the company's Executive Director Mr. Kiril Gegov. More than BGL 50 billion are debts of state-owned companies. The company has 210 clients, of which 25 hold 99 per cent of the debts.
Source: Pari (22.10.1998)

"Bulgargas" JSC will invest the amount of USD 350 million for construction of new gas-mains in Bulgaria, the company's Executive Director Mr. Iliya Ivanov reported. "Bulgargas" JSC has the amount of USD 28 million at the moment. The company has signed contracts for an extention of the payments to 20 of its bigger debtors.
Source: Kontinent (23.10.1998)

"Bulgargas" JSC transferred BGL 260 million to the municipalities, on the territory of which are to be found the company's units. This will benefit the economic state of municipalities Polski Trumbesh, Vulchi Dol, Loznitza, Straldzha, Ihtiman, Petrich, Botevgrad.
Source: Democracy (26.10.1998)

"Bulgargas" JSC reported a profit of BGL 44.8 billion for the nine months of 1998, stated the company's Executive Director Mr. Kiril Gegov. At the present moment the company has no debts to suppliers, and in the last two months has invested BGL 7 billion in and investment programme. At the present moment "Bulgargas" JSC disposes of USD 27-USD 28 million. "Bulgargas" JSC owes the state budget BGL 322.862 billion.
Source: Capital (26.10.1998)

The construction of gas mains to Turkey is already completed. It will be put into operation by the 6th of November, 1998. The project amounted to USD 2.5 million.
Source: Trud (03.11.1998)

The debts of "Promet" SPLtd. should be remitted, was insisted by the privatization intermediary "Atkins". Otherwise the company must be sold for USD 1. The company owes NEC, "Bulgargas" JSC and "Economic Bank" JSC nearly BGL 17 billion. The term for submitting offers for the privatization of "Promet" JSC expires on November 19, 1998.
Source: Pari (17.11.1998)

MPs from Energetics Committee demanded on remission of BGL 38 billion of the debts of "Toplofikatzia" SPJSC to "Bulgargas" JSC.
Source: Pari (19.11.1998)

By the end of 1999 "Petreko" will start exploration of a gas field in the vicinity of Galata cape, reported the company's Director Mr. David Archer. Thus will be supplied with gas "Devnya Tziment" JSC and "Agropolychim" JSC for the next 5 years.
Source: Democracy (20.11.1998)

The Commission for Protection of Competition did not take into consideration the claims of 6 gas companies against "Bulgargas" JSC for abuse of its monopoly status.
Source: Kontinent (26.11.1998)

From the next year four fertilizer plants will pay their debts to the state-owned "Bulgargas" JSC for three years without a grace period and in interest of 43 per cent. The payment will be in the price of the natural gas of BGL 135,738 which is 5 per cent less than the current price. This is one of the opportunities for the payment of debts of the following plants: "Chimko" JSC, "Agrobiochim" JSC, "Neochim" JSC and "Agropolichim" JSC. The other opportunity stipulates a remission of all interest and the half of the capitals in an extension of the debts for the same period.
Source: BTA (27.11.1998)

The price of natural gas for domestic consumers will drop from January 1, 1999 if the suggestion of Energetics Committee is adopted, reported the Chief Executive Director of "Bulgargas" JSC Mr. Kiril Gegov. Reason for this are decreased duties and VAT as well as the lower price at which Bulgaria will buy fuel next year.
Source: Pari (17.12.1998)

Natural gas consumer prices were cut by 9.24 per cent - 1.000 cubic meters will cost BGL 167.000 instead of the previous BGL 184.000. The proposal, made by "Bulgargas" JSC, was accepted by the Committee of Energy a few days ago.
Source: Pari (04.01.1999)

"Kozhuhgas" JSC - 80 per cent of its shares are property of "Overgas" and 20 per cent are owned by Petrich municipality, started negotiations with "Bulgargas" SPJSC for gas supply. "Kozhuhgas" JSC was the only candidate for concession for gasification of the municipality. According to preliminary data, the gas mains construction will cost nearly USD 2 million.
Source: Pari (11.01.1999)

PA invited the buyer of "Agropolychim" JSC (Devnya) - the Norwegian company "Norsk Hydro" to sign the sale contract. Despite the approval of sale for USD 1, the reason for lack of contract up to now is that there is no agreement between "Norsk Hydro" and "Bulgargas" JSC for payment of the debts.
Source: Pari (29.01.1999)

The procedure of glass-works "Cristal" JSC (Pernik) insolvency is temporarily stopped. Four potential buyers are interesting in the company. "Bulgargas" JSC is the biggest company’s creditor with the amount of BGL 6.6 billion. It was signed an agreement for an extension of the debt within12 years. "Cristal" JSC must pay the amount of BGL 100 million to the dismissed 480 company's workers last year.
Source: Pari (18.02.1999)

The state will settle the debts of "Kremikovtzi" JSC to NEC and "Bulgargas" JSC amounting to BGL 83 billion, according to the financial framework sent to the candidate-buyers of the metallurgic plant, reported the Chairman of syndicate "Metalitzi" Mr. Vassil Yanachkov. Negotiations will be carried on with BDZ for a three-year contract. The BDDB debts of "Kremikovtzi" JSC amount to USD 105 million - they will not be remitted but the term for payment will be 15 years with 5-year grace period. March 8 is the final term for submitting offers for privatization by the four candidates - "Erdemir", "Deuferco", "Daru Metals" and "Tenida Anstalt".
Source: 24 chasa (24.02.1999)

The Executive Director of "Chimco" JSC (Vratza) Mr. Emanuil Rafailov reported that 500 or 530 workers will be laid off. At the moment in "Chimco" JSC are working 2150 people. The expected financial result of the company for 1998 is a loss of BGL 40 billion. The expected sales for February are in the amount of BGL 6 - BGL 7 billion. "Chimco" JSC restored the servicing of its debts to "Bulgargas" JSC. The company has paid BGL 10 billion but the total amount of its debts is nearly BGL 50 billion. An increase in the sales of carbide gave "Chimco" JSC the opportunity to start paying back its loan of USD 2.8 million granted by UBB.
Source: Banker (08.03.1999)

The Turkish company "Erdemir", the Bulgarian company "Daru Metals" JSC (Sofia) and the Swiss company "Deuferco" have submitted offers for the privatization of "Kremikovtzi" JSC in the due term, was reported from PA. The state will undertake the company's debts to NEC and "Bulgargas" JSC - USD 50 million. Debts on the Bad Loan Management Act will be replaced by two new debts in the total amount of USD 105 million. One part to Kontrol bank - Austria and the second part to the Ministry of Finance.
Source: 24 chasa (09.03.1999)

"Neftochim" JSC (Bourgas) paid in the budget BGL 1.000 billion in 1998. At a national budget of BGL 3.5 trillion the refinery secures 1/3 of the country's budget, was reported from the enterprise's press-centre. At the beginning of 1998 the debts of "Neftochim" JSC were in the amount of BGL 356 billion and at the end of 1998 they amounted to BGL 215 billion. The company paid debts to "Bulgargas" JSC - BGL 108 billion and to NEC - BGL 25 billion.
Source: Pari (11.03.1999)

Natural gas supply to "Agropolychim" JSC was sharply decreased, was reported from the company. Reason for this are debts to "Bulgargas" JSC in the amount of BGL 40 billion.
Source: Standart (09.04.1999)

"Stomaneni Trubi" JSC (Septemvri) will not take part in the auction for delivery of the necessary pipes for gas-mains, stated Mr. Vasil Yanachkov, Chairman of federation "Metals".
Source: Pari (20.04.1999)

The Executive Director of "Chimco" JSC (Vratza) Mr. Emanuil Rafailov confessed that there are some contradictions among the company's managers. According to him, the workers had been mislead to establish a manager-employee company in order to retain their jobs but in fact this was an attempt for termination of the monopoly of "Bulgargas" JSC.
Source: Pari (21.04.1999)

"Bulgargas" JSC stopped the delivery of natural gas to "Agrobiochim" JSC because of debts of BGL 41 billion. The total debts of "Agrobiochim" JSC exceed BGL 160 billion.
Source: Democracy (22.04.1999)

All production lines in Agrobiochim JSC terminate operations as from May 10. The company has a debts of BGL 61 billion to Bulgargas JSC. Last month the company stopped the production of ammonium and replaced the gas with coal. Last week Neochim JSC stopped producing ammonium.
Source: Pari (10.05.1999)

The privatization of Agropolychim JSC does not depend on PA, stated the Executive Director Mr. Zahari Zheliazkov. He also said that a favourable solution could be found for settlement of the debts of Agropolychim to Bulgargas JSC. The latter is ready to negotiate with the potential buyer Norsk Hydro.
Source: Pari (14.05.1999)

Stomaneni Trabi JSC will sign agreements with municipalities that have permission for gasification, was reported from the enterprise. Bulgargas SPJSC suggested that the municipalities negotiate with the enterprise.
Source: Standart (25.05.1999)

Against the price of USD 1 the Bulgarian company Daru Metals, with a capital of BGL 50 million and 6 natural persons - shareholders, became owner of Kremikovtzi JSC. According to the parameters of the deal, Daru Metals must make investments of USD 300 million by the end of 2005. The company will also decrease the number of jobs to 8700 people in 1999 and to 7100 - by the end of 2003.
Source: Democracy (04.06.1999)

The Energy Committee to transfer the amount of BGL 693 million on the accounts of "Bulgargas JSC (Sofia) for the payment of power plants' fuel. This has been offered to the Chairman of the Energy Committee Mr. Ivan Shiliashki. The power plants have received the amount of BGL 12.967 billion since the beginning of the current year.
Source: Sega (10.06.1999)

The Government considers the proposal for actualization of Bulgargas JSC (Sofia) capital. The actualization could be done eventually through remission of the company's debts and including of their amount in the company's capital. The capital of Bulagrgas JSC is USD 10 million but the gas company costs ten times more, stated the Deputy-Prime Minister Evgenii Bakardzhiev.
Source: Pari (11.06.1999)

The Government approved the contract with Bulgarian Daru Metals JSC (Sofia) on the sale of 71 per cent of the shares of Kremikovtzi JSC (Sofia). The deadline for the financial rehabilitation of the metallurgical plant expires June 30, 1999. The contract with the privatization adviser WS Atkins International-Raiffeisen Investment, expires June 29, 1999. The offer of Daru Metals JSC meets almost in full the framework set by the state. Gruppo Marcegaglia, the Italian long-term partner of Daru Metals JSC, was referred to as the guarantor of the long term-investments. Kremikovtzi JSC reported BGL 645 billion liabilities, towards April 30, 1999. The state assumes the company’s debts to the National Electric Company JSC (Sofia) and Bulgargas JSC (Sofia), totaling BGL 183 billion, outstanding customs duties, dues to the state and municipal budgets. The buyer makes the commitment to pay off previous liabilities above the amount assumed by the state but no more than BGL 93.688 billion and to service the ZUNK debt amounting to USD 105 million.
Source: Democracy (11.06.1999)

The contract for sale of 71 per cent of the shares of Kremikovtzi JSC was signed by PA's Director Mr. Zahari Zheliazkov and Daru Metals JSC, represented by Mrs. Svetlana Dimitrova. This is only a part of the plant's privatization. In the middle of September will take place the shares' endorsement, stated Mr. Zheliazkov. Till then must be signed additional agreements and also must be established a joint-venture company between the Bulgarian company and Gruppo Marcegaglia. The deal amounts to USD 1. The state undertakes debts of BGL 183 billion. The buyer must service debts of Kremikovtzi to Bulgargas JSC, NEC, National Security Institute of BGL 93.688 billion. Daru Metals is also going to undertake USD 70 million on the Bad Loan Management Act (transformed into a debt to Kontrolbank - Austria) as well as a USD 35 million debt to the Ministry of Finance.
Source: Sega (15.06.1999)

The statements made by Philippe Rombaut, the Director of Union Miniere Bulgaria, that the privatization deal with Norsk Hydro has failed are absolutely untrue, the Executive Director of Agropolichim JSC (Devnia) Mr. Ivan Diakov reported. He further said that Norwegian concern has not yet given up their intentions to by the fertilizer plant. Norsk Hydro has submitted a proposal for a framework agreement with Bulgargas JSC (Sofia) and is expecting now the answer of the gas company and the Ministry of Industry, added Mr. Diakov.
Source: Pari (18.06.1999)

The capital of Bulgargas JSC will be increased up to BGL 370 billion, according to a draft for settlement of the debts of Bulgargas, that was approved by the cabinet. This increase will be completed through issue of new shares of BGL 370 million with a face value of BGL 1.000. The cabinet also approved a programme for restructuring of the company.
Source: Standart (02.07.1999)

The monopoly of Bulgargas JSC will not be terminated till the year of 2006. This is a part of the rehabilitation programme passed by the cabinet, stated the Minister of Finance Mr. Muravey Radev. Till then the company must pay all of its debts as well as execute the programme for restructuring. The companies that do not pay their natural gas deliveries, will not be delivered gas anymore. 22 enterprises owe BGL 500 billion to Bulgargas - among them are Kremikovtzi JSC, Neochim JSC, Agropolychim JSC, Agrobiochim JSC, Chimco JSC.
Source: Pari (05.07.1999)

After a few unsuccessful attempts PA finally sold Chimco JSC - Vratza - BGN 1.1 million for 57 per cent of the shares. Buyer is IBE Trans of NY - USA. Investments in the plant should amount to USD 50 million and another USD 10 million must be allocated for working capital. Within 6 months after the contract becomes effective, the buyer is due to present written agreements with Chimco's creditors - Bulgargas and UBB. Of USD 8 million due to UBB, Chimco has paid USD 6 million - the new owner has USD 2 million to pay. The debt to Bulgargas exceeds BGL 54 billion (old leva).
Source: Standart (09.07.1999)

The government approved to allocate BGL 193 billion from the structural reform fund into the reserve fund of Kremikovtzi SPJSC. The fund will be used for covering liabilities as follows: BGN 49.463 million dues to the budget, BGN 85.826 million dues to Bulgargas JSC and BGN 47.710 million dues to NEC. Kremikovtzi SPJSC will obtain the funds after privatization of 71 per cent of its capital.
Source: Democracy (30.07.1999)

Bank DSK JSC claims for being a creditor of Kremikovtzi JSC (BGN 10 million) on the cession contract between Kremikovtzi JSC and Multigroup JSC for the debts to Bulgargas JSC, stated Mr. Bozhko Bonev from Daru Metals JSC.
Source: Pari (02.08.1999)

The guarantee of Gruppo Marcegaglia for the privatization of Kremikovtzi JSC may be replaced with guarantees from banks and large companies, stated the Director of PA Mr. Zahari Zheliazkov. The guarantee refers to forfeits on investments’ non-execution - USD 12.5 million per annum.
Source: Standart (06.08.1999)

KPMG will complete the financial audit of Bulgargas JSC for 1998, stated the company's Executive Director Mr. Kiril Gegov.
Source: Standart (16.08.1999)

Agropolichim JSC has negotiated a deferred debt payment scheme regarding all large creditors of the works, one of the three company’s liquidators Mr. Martin Martinov reported. Since 5 July the company has paid out over BGN 3 million debts to suppliers. Agropolichim JSC signed with its largest creditors Bulgargas an agreement for due payments gratis period till October 1, 1999. After this date payments of the principal standing at non-denominated BGL 47.5 million will be made on a gradual basis and non-denominated BGL 20.5 million penalties will be purged. Over non-denominated BGL 120 million dues to Port Varna will also be paid out under a negotiated deferred payment scheme. According non-official information the consortium between Union Miniere and Harland Investment will re-employ about 1500 workers in case the sale of 63 per cent in the capital of Agropolichim JSC is finalized until September 13, 1999.
Source: Democracy (02.09.1999)

PA's Supervisory Board approved of the sale of 63 per cent of Agropolychim JSC - Devnya to the consortium ACID&Fertilizers - Union Minier Pirdop Med JSC and Hardland Investment Ltd. (USA). The price is BGN 1. The new owners must reach an agreement with the company's creditors up to April 14, 2000. The debts of Agropolychim JSC amount to BGN 92.959.680. Biggest are the debts to Bulgargas JSC, Union Minier JSC, Devnya Thermal Power Station, KZM, OZK, Karimex - Beirut. ACID&Fertilizers must make investments of USD 15 million in the next 5 years.
Source: Standart (14.09.1999)

The Parliament took a decision for the state share in Bulgargas SPJSC to be increased with BGN 370 million. The debts of Bulgargas SPJSC to the state amounted to BGN 600 million at the end of June.
Source: Standart (20.09.1999)

The only candidate-buyer of Neochim JSC - Dimitrovgrad is a consortium formed by Lebanese company Carimex and Euro Fert JSC - Dimitrovgrad. The deal can be concluded only after the debts of Neochim JSC to Bulgargas JSC are settled, stated PA's Executive Director Mr. Zahari Zheliazkov.
Source: Pari (27.09.1999)

The state-owned stake in the capital of Bulgargas JSC will go up by BGN 370 million. The company's Executive Director Mr. Kiril Gegov must file an application for registration of the new capital up to September 30, 1999.
Source: Standart (29.09.1999)

Bulgargas JSC will stop gas deliveries to its debtors. If the debt is not paid in 30 days, the debtor has one month to pay it, otherwise his bank accounts will be blocked.
Source: Democracy (08.10.1999)

The Privatization Agency announces the concluded deals during June, July and August 1999. Main sales - Opticoelectron SPJSC, Panagyurishte – 76 per cent of the capital sold to Opticoelectron – 99 JSC for USD 1,100,000.
Source: State Gazette (08.10.1999)

PA declared the following sales: 71 per cent from Kremikovtzi JSC, Sofia were sold to Daru metals - JSC for USD 1 that are paid in cash. The buyer is engaged to invest USD 300 000 000 for the period 2000-2005. The buyer is engaged to service the debts of Kremikovtzi - JSC to Bulgargas - SP JSC, NEC - SP JSC, National Security Institute, taxes, duties and others over the amount of BGN 183 billion.
Source: State Gazette (08.10.1999)

Bulgargas JSC and US company Enron signed an agreement for cooperation, was reported from Bulgargas. Enron is expected to prepare a programme for development of the gas company.
Source: Standart (11.10.1999)

Agropolychim JSC will be granted BGN 47 million from the state budget to settle its debts to Bulgargas SPJSC. The company's privatization contract envisages for transfer of the shares after the debts to Bulgargas SPJSC are settled.
Source: Democracy (22.10.1999)

Directors of 5 glass-works sent letters to President Petar Stoyanov, Prime Minister Ivan Kostov and the Executive Director of Bulgargas JSC Mr. Kiril Gegov, saying that the monopoly of Bulgargas JSC ruins the glass industry through the high prices of gas - BGN 207 per 1000 cub. meters.
Source: Standart (05.11.1999)

Glass-works Crystal JSC - Pernik has to pay BGN 6 million debts to its creditors. According to the company's rehabilitation programme, the money must be paid back in the next 10 years. In April, 1998 the plant stopped working because of BGL 4 billion debts to Bulgargas JSC.
Source: Standart (17.11.1999)

We could reject the gas deliveries of Bulgargas SP JSC, the new Executive Director of Agropolichim JSC - Devnya Mr. Vasil Alexandrov reported after the General Meeting of the fertilizer plant's shareholders. We are in negotiations with Bulgargas SPJSC at the present moment for lower gas prices. We are ready to stop the production of ammonia and to import it from Russia, if the state-owned company refuses to give us lower gas prices Mr. Alexandrov added. The company's shareholders have taken a decision the capital of Agropolichim JSC to be increased from BGN 2.7 million up to BGN 22 million. The new owner of the Agropolichim JSC - Acid & Fertilizer, a consortium between Haarland Investments and Union Minier, will keep the company's name.
Source: Standart (15.12.1999)

A representative of Italian Edisson said the company was ready to start making deliveries if natural gas to Bulgaria, announced Mr. Dimitar Dimitrov, Chairman of the State Energy Regulatory Commission. We have good contacts with Libya and the Emirates and can supply gas from there at competitive prices, was emerged from Edission. Mr. Dimitrov explained that the talks were still in their proposal phase and there were no discussions as to where a sea terminal might be built or who would finance the project.
Source: Pari (20.12.1999)

Production of ammonia and carbamide in Chimko JSC - Vratza was suspended as Bulgargas SPJSC - Sofia stopped raw supplies on December 16, 1999. The company's management failed to collect the necessary funds to pay the amounts invoiced December 7.The transaction concerns an advance payment of 1/2 of the ordered monthly gas deliveries as per a contract between the two companies. Chimko management said the works' facilities will be loaded on Monday.
Source: Pari (20.12.1999)

The financial investigation in the gas company has found that Bulgargas SPJSC owed to the state BGN 108.4 million for the period of July 1996 up to September 1998. The debts were not included in the company’s annual report. BGN 1 070 was the average wage in Bulgargas SPJSC for 1998 and BGN 752 for 1997, the MP Mr. Stefan Neshev reported.
Source: Standart (20.12.1999)

We signed a credit contract with Gasprombank and we'll receive USD 47 million for the year of 2000, stated Mr. Kiril Gegov, Executive Director of Bulgargas JSC. The first tranche of USD 9 million has already been transferred.
Source: Sega (22.12.1999)

International financial corporation Global Fidelity will grant USD 6.5 million for the gasification of Gabrovo. Gas-mains' construction will start in the spring.
Source: Standart (28.12.1999)

Neftochim JSC litigates the claim of Bulgargas JSC for BGN 20 million. The refinery has debts for delivered but not paid natural gas, accumulated before its sale to LUKoil.
Source: 24 chasa (29.12.1999)

4 Bulgarian companies are among the first 100, according to Business Central Europe Magazine. These are NEC - 29th place, Neftochim JSC - 41st place, Kremikovtzi JSC - 79th place, and Bulgargas JSC - 83rd place. The best Bulgarian bank is Bulbank JSC.
Source: BTA (30.12.1999)

Stomana JSC may stop working if the trade unions and Eurometal Ltd. and Metal Traders do not reach and agreement.
Source: 24 chasa (30.12.1999)

A joint-stock company for the gas supply of Botevgrad will be registered by February 10 this year. The requirement of the Dutch Ministry of Economy to be registered a company for the gas supply of the town will be executed. There are several variants that are developing for the future JSC. There will be an invitation for participation to Toplofikatzia Pravetz SP JSC and Plasthim SP JSC. The company will be registered with an initial shareholders' equityand then the capital will be increased and will be deposited the contributions of the all shareholders.
Source: Botevgrad News (17.01.2000)

Bulgargas JSC has paid in the budget BGN 4.4 million profit tax for January, 2000, was reported from the national gas monopolist.
Source: Sega (18.01.2000)

US Trade and Development Agency (USTDA) granted USD 276.000 to Bulgargas JSC for expansion of the gas store in Chiren Village.
Source: Standart (25.01.2000)

Overgas Inc. JSC will endow Bulgargas with USD 7 million, stated Executive Director Mr. Sasho Donchev.
Source: Pari (27.01.2000)

There is a project for establishment of 11 branches of Bulgargas JSC, stated the company's Director Mr. Kiril Gegov. Bulgargas JSC started negotiations with Petreco Sarl (Great Britain) on the project for extraction of gas in "Galata".
Source: Standart (28.01.2000)

Chimco JSC stopped the production of carbide because of unpaid bills to Bulgargas JSC and NEC SPJSC. The company owes NEC SPJSC BGN 10.000.
Source: Sega (17.02.2000)

The Ministry of Environment is going to impose sanctions on Chimco JSC and its executive Director Mr. Valentin Dimitrov because of pollution of the air in Vratza. This was reported after a meeting of Mr. Ivan Shilyashki - Chairman of the Agency for Energetics, with Mr. Kiril Gegov - Director of Bulgargas JSC, Mr. Danail Tafrov - Executive Director of NEC, and Directors of Chimco JSC.
Source: Sega (18.02.2000)

Chimco JSC paid BGN 165.000 to Bulgargas JSC and thus settled its debts to the gas company, stated Mr. Velko Gyurov, Director in Chimco JSC. Bulgargas JSC has to pay compensations to Chimco because of stopping the fuel deliveries.
Source: Standart (22.02.2000)

PA selected Neochim Invest JSC (a consortium formed by Euro Fert and Carimex Chemicals International) an exclusive buyer of Neochim JSC - Dimitrovgrad. The contract must be signed up to March 10th, 2000.
Source: Capital (29.02.2000)

Chimco JSC - Vratza will restore its activities on March 2nd. The company stopped working two weeks ago because of lack of gas supply from Bulgargas JSC.
Source: Standart (02.03.2000)

Toplofikatzia Sofia owes to Bulgargas BGN 41 850 million, Toplofikatzia Sliven owes to Cherno more mine BGN 1.363 million and to Bulgargas - BGN 309 000.
Source: Capital (08.03.2000)

The construction of a parallel main gas pipeline from The Romanian border to Turkey and Greece was launched a few days ago, at a point, situated at some 2.5 km from the city of Kardam. The pipeline will go parallel to the existing one, thus doubling the capacity of the route. According to the Bulgargas SPJSC - Sofia project the costs are estimated at USD 100 million and more. The first 47-km stage of the construction should be completed for 10 months by Gasstroymontzh JSC.
Source: Pari (09.03.2000)

Chimco JSC - Vratza will restart its production activities at the end of March, 2000. The company's debts to Bulgargas JSC have been settled.
Source: Pari (13.03.2000)

Overgas Inc JSC offered to Pleven municipality to prepare a scheme for the gas supply system of Pleven. Candidates for the gasification are Overgas Inc., British company Amek and Italian Salinni.
Source: Sega (13.03.2000)

BGN 75 million was the loss of Bulgargas JSC for 1999 because of delayed payments to the budget, announced the Director of the company Mr. Kiril Gegov. The company has to pay sanction interests for BGN 113 million on debts, not paid in the period of 1996 - 1999. At the same time the company remitted defaults to its clients for BGN 85 million.
Source: Sega (13.04.2000)

Podkrepa SU required from the Government to remit and extend the debts of Neochim JSC - Dimitrovgrad which is till now BGN 30 million. In other case if this won't happen the company may not be privatized and to enter in the list for liquidation. According to the contract with Bulgargas JSC the company has to deposit BGN 1 million annually.
Source: Pari (19.04.2000)

If Himko JSC do not start the payment of the debts to Bulgargas SP JSC do not abide by the privatization contract, the deal with the american company IBE Trance of New York may break. This was stated by the MP Dr. Krassimir Kamenov. The debts of Himko JSC are about BGN 60 million but it paid only the minimum of the debt, pointed from the finance department of the company. The debt negotiations with representatives of Bulgargas JSC continue.
Source: BTA (24.04.2000)

The ceramic plants may bankrupt if the Energetic Agency approved the offer of Bulgargas SP JSC for raising the price of the oil. This was reported by the directions of the biggest companies in the branch that created their union.
Source: Standart (24.04.2000)

The shareholders of Chimko JSC - Vratza decided to pay the debts of BGN 19.6 million during the next 5 years. The Director of Chimko JSC Mr. Valentin Dimitrov stated that the plant would work with 25 per cent of its capacity while the deal with Gasprom for preference prices of the natural gas.
Source: Standart (02.05.2000)

The Chairman of the State Energetic Agency, Mr. Ivan Shiliashki negotiated a drop of the transit fee for Russian natural oil for Bulgaria with 28.6 per cent during the visit in Romania. The agreement is to 2003 and in this period Bulgaria has to pay for the delivery through Russia USD 16 million.
Source: Pari (03.05.2000)

Bulgargas started to sell natural gas to Himko JSC after in February stopped to provide the product for the plant in Vratza. Himko JSC will fulfill orders of cooperated deliveries with Bulgarian companies among which are Folbek JSC - Nova Zagora, LUKoil - Neftochim JSC - Bourgas, Messer Himko gas Ltd, Neochim JSC.
Source: BTA (08.05.2000)

BGN 75 000 is the loss of Bulgargas JSC for the previous year, according the annual financial results of the state-owned gas company. The total company's expenses for 1999 amount to BGN 803 546. The total incomes of Bulgargas JSC amount to BGN 728 511, according to the annual reports. The reason for the bad financial results of the Bulgargas JSC is the decrease of the natural gas consumption in Bulgaria during the last year and the higher prices of the oil on the international markets.
Source: Standart (22.05.2000)

The plants that are producing floor and wall tiles in Han Asparuh JSC - Isperih, Han Omurtag JSC - Shoumen, Izida JSC - Elin Pelin, Faience JSC - Kaspichan and Podova keramika JSC, Montana will be forced to close some of the production capacities if the price of the gas continues to increase. Despite of the activity of the Bulgarian representation, the acieved results do not improve the position of the idustrial consumers of natural gas in the State. The financial reliefs of the reduce of the transit fees through Roumania are insignifant in comparision with the planned raise of the price of the gas from Bulgargas.
Source: Democracy (01.06.2000)

The Government did not accept the offers of Bulgargas for the increase of the price of the natural gas with 22 per cent and decided the price to raise with 17.5 per cent or BGN 268 for 1000 cubic metres with VAT. Some of the motives of Bulgargas JSC for the bigger increase are the delivery price and the change in the currency rate, stated the Executive Director of the company Mr. Kiril Gegov at a press conference in the Council of Ministers.
Source: BTA (02.06.2000)

A 51 per cent of the capital of the fertilizer and ammonia maker Neochim JSC - Dimitrovgrad will be acquired by the consortium Neochim Invest, the PA Supervisory Board ruled at its yesterday’s session. The price of the deal is USD 100 000. The buyer is obliged to invest the amount of USD 5.555 million in the next 5 years and covering the plant’s debts and liabilities. The Neochim Invest Consortium includes Eurofert JSC and the Lebanese company Karimex Chemical International - an affiliate of Karimex Group. The major debts of Neochim JSC are to the state gas monopoly Bulgargas JSC and amount to BGN 29.8 million. As on May 8, 2000 Neochim’s staff was 1 865.
Source: Sega (08.06.2000)

Most of the money, necessary for the investment programme of Bulgargas this year, will be granted by the State incomes of transit fees for transport of gas for Turkey, Greece and Macedonia. The money will be for the increase of the capital of the company, stated the Chief Executive Director of Bulgargas Kiril Gegov. Up to BGN 153 million will be invested this year in the transit net near Provadia. There will be more money from the reminder from the debts of Ukraine to Bulgaria according to the Jamburg agreement and the loan, received from Gasprom.
Source: Pari (09.06.2000)

PA sold 51 per cent of the capital of Neochim JSC - Dimitrovgrad for USD 100 000 to Euro Fert JSC - Dimitrovgrad and the Lebanese company Karimex Chemical International, was pointed in a statement of the Agency. Only 30 per cent of the price will be paid in cash and the rest - in long-term bonds on the State debt. The new owners are obliged to invest in it USD 5 555 555 for 5 years. 25 per cent of the capital of the company was sold in 1996 - 1997 in the first wave of the mass privatization. The main problem of Neochim is the debt of BGN 29 803 000 to Bulgargas, was reported from PA. The buyers are obliged to pay the debts of the company to the Ministry of Finance, Trade banks and suppliers.
Source: 24 chasa (13.06.2000)

The fertilizer plants Neochim JSC, Agropolichim JSC and Chimko JSC are ready for protest because of the new raise in the prices of the natural gas from July, stated the Director of Chimko JSC Mr. Valentin Dimitrov. The Management of Bulgargas JSC has already offered the Government to increase the price with 7 per cent. The price of the gas increased with 17.5 per cent last month because of the expensive petrol. From the presscentre of the Energetics Agency informed that there was not any intention to increase the price of the gas.
Source: Standart (28.06.2000)

Sofia City Court registered the following change for Bulgargas - SP JSC: the capital is increased from BGN 493 044 759 to BGN 512 691 344, allocated in 512 691 344 personal shares per BGN 1.
Source: State Gazette (30.06.2000)

The iron and steel works of Kremikovtzi JSC - Sofia are in talks with the Austrian steel group Voest Alpine to set up a joint venture to upgrade and manage Kremikovtzi’s continuos steel casting. Through this arrangement the company hopes to repay its USD 70 million debt to Austrian’s Kontrol Bank. Kremikovtzi JSC posted a loss of BGN 179.906 million in 1998. After the company was privatized the loss-making facilities were separated from the core operation. Sofia-based Daru Metals JSC bought 71 per cent in Kremikovtzi JSC capital in June 1999 for a token price of 1 US dollar. The plant which accounts for 80 per cent of Bulgaria’s ferrous metal output, had a BGN 13.005 million profit for January-May this year.
Source: Standart (03.07.2000)

Himko JSC increased its capacity of carbide to 50 per cent of the capacity with the introduction in action of two technologic lines, was reported from the company. The increase is in accordance with an order of Agropolichim JSC and with additional orders from the regional market, specified the Management. Because of the big difference between the price of the natural gas and the international price of the carbide, explained the Executive Director Mr. Valentin Dimitrov. Mr. Dimitrov also stated that it is expected from September with the introduction at the international market of China as the most considerable consumer of carbide, the price of the nitrogen fertilizer to increase and the plant to gain some of its old markets.
Source: BTA (10.07.2000)

Bulgargas SP JSC stopped the gas-supply for Toplofikatsia - Vratsa SP JSC - Vratsa, becuase of accumulated debts amounting to BGN 300 000. This was reported by the Director of the company Mr. Angel Angelov. On the îther hand Toplofikatsia - Vratsa SP JSC - Vratsa must gather BGN 3.4 million debts.
Source: Democracy (25.07.2000)

Toplofikatsia JSC - Shumen owes to Bulgargas SPJSC BGN 1 100 000. The debts of the subscribers to the company are over BGN 4 000. BGN 2500 are owed by citizens, BGN 1200 are owed by municipal and state companies and BGN 500 000 are owed by private companies. This was reported by Mrs. Milka Stefanova - Manager of the company.
Source: Standart (27.07.2000)

Privatization Agency made to the following announcement: 3.48 per cent of the capital of Medipharm JSC, Sofia were sold to rightful claimants for BGN 4257; 5. Neochim JSC, Dimitrovgrad – 51 per cent from the capital sold to Euro Fert JSC and Karimex Chemicals International SAL for USD 100 000.
Source: State Gazette (01.08.2000)

18 000 households in the town of Shoumen will remain without hot water because of debts to the local Toplofikatsia of Bulgargas. The gas company refused deliveries until the bills are paid. The Ministry of Finance granted BGN 860 000 to the municipality. The Shoumen-based TPS, however, needs BGN 360 000 more to settle its accounts with Bulgargas. The unsettled sums from private households amount to BGN 2.5 million, and those from companies - to about BGN 500 000.
Source: Standart (11.08.2000)

The State granted BGN 26.7 million to the Municipalities and to Administrations, supported by the budget which have debts to the central heating stations. BGN 19.2 million of this sum is the subsidy for the municipalities, was reported from the Energetics Agency. With these funds the heating stations have to pay the debts to the company Bulgargas SP JSC. The total debts to the gas company amount to BGN 15 million, according to data of the Energetics Agency as of the end of July. The funds are being granted in accordance with the recently approved decree for a change in the norms for the price forming in the energetics.
Source: Standart (21.08.2000)

Gasprom expressed will to buy 35 per cent of Roseximbank. Currently, negotiations for the fixing of the exact share and the sum, for which the shares will be sold, are in the process. The aim of Gasprom's share in Rosexim is that the bank should become Balkan dispatcher station for the Russian company's projects in Turkey, Greece and Macedonia. USD 47 million private credits pass through the bank. These money are granted to Bulgargas by Gasprom.
Source: 24 chasa (25.08.2000)

The transit of Russian natural gas for Turkey through Bulgaria will be increased with 1 billion cubic meters to 11 billion cubic meters by the end of this year, was announced from the Energetics Agency yesterday (August 31). This was negotiated by the representatives of Bugargas and the Turkish company Botash.
Source: Standart (01.09.2000)

The glass factory Belopal is in danger of bankruptcy. Bulgargas loses about BGN 300 000 monthly because of not paid debts of Belopal that owes to the company about BGN 2.2 million. Bulgargas may stop the technological providing of gas, was stated by the Director of Sales Department Mr. Nikolai Popov but by this way will stop the gas supply of another 6 companies which are on the territory of the factory and they are regular payers. Belopal also owes to the StatThe State Receivables Collection Agency /SRCA/imately BGN 2 million. On October 5. 2000 the consecutive case against the factory, initiated by Bulgargas and The State Receivables Collection Agency /SRCA/ will begin in Varna District Court.
Source: Black sea (11.09.2000)

Stamboliiski will start negotiations with Bulgargas for gas supply. The gas supplying network passes through the western part of the town. So far the half of the buildings have been heated by Tzelhart. The Mayor Mr. Ivan Atanasov received a promise by the Turkish Ushaklar holding that will not stop the heating over the winter.
Source: Maritsa (17.09.2000)

Specialists from Gazstroymontazh finished the construction of a new section from the transit gas-main to Turkey at the compressor station Kardam, was announced from the company's press center. The normal supply of natural gas has been restored since September 22. The construction of two 45-km sections of the transit gas-main - from the Romanian border to the village of Odrintsi and from the village of Liuliakovo to the compressor station Lozenets - will be finished by December 15.
Source: BTA (25.09.2000)

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 National gas supply company Bulgargas is realizing its investment programme for this year and by December 15 it will be completed, was reported from the head-office of the company. BGN 105 million are spent from the total sum of BGN 153 million. The investment programme is fixed in the agreement signed between Bulgargas and the foreign trade company of Gasprom - Gasexport. it is for a USD 47 million loan, granted by Gasprombank. The execution of the three-year investment programme will give an opportunity to Bulgargas from the end of 2001 to transit 17 billion cubic metres natural gas annually through the State's territory to Turkay, Greece and Macedonia.
Source: Banker (02.10.2000)

4 months after the privatization, the new major owner of Kaolin - Alfa finance made considerable investments. It is constructing a gas pipe in which are invested DEM 3.5 million. The trace will be in use for the factories in Senovo and Viatovo. The gas pipe is erecting according to a project of Bulgargas. In the factory in Ignatovo is building a new work-shop for milled products. Now is also building a work-shop for construction glue and the ambition of Kaolin is to be a leading company in this direction. The company has not got debts anymore as they amounted to BGN 500 000 two months ago.
Source: Pari (02.10.2000)

The underground gas repository Chiren can be used for years to come, but the current exploitation regime is leading to unjustified expenses. The repository’s capacity can be kept or even increased, if measures for about USD 1 million are taken by the end of the year 2003. This becomes clear from the preliminary results from the project for enlargement of the repository and introduction of a new information system for Bulgargas JSC. The survey is financed through gratuitous help from the Agency for Trade and Development in the USA in the amount of USD 276 000 for Bulgargas JSC. An additional sponsorship for more than USD 276 000 is realized by the chief executor - Power Center Sarcase with the University of Oklahoma, the American Power Corporation Enron and American and Bulgarian companies-executors. The project for enlargement of the repository and introduction of information system for Bulgargas is the first gratuitous help by the Agency for Trade and Development - USA in the power branch in Bulgaria.
Source: Sega (11.10.2000)

The budget of the Parliament for 2001 will increase with 38.37 per cent in comparison with the funds which the Parliament has this year. This is offered in the project budget for the next year. It is expected the expenses of the Parliament to be BGN 18.806 million. The budget of the Council of Ministers will be also raised - from BGN 66.2 million this year to BGN 78.182 million for 2001. This increase is with 18.1 per cent and the expenses in the budget are increased only with 13 per cent. BGN 3.3 billion are expected for the expenses of all departments and budget organizations.
Source: Standart (25.10.2000)

About 150 workers are threatened to lose their jobs in Beloslav. A work-shop in the glass plant Belopel may stop its work because of a lack of orders for production. The work-shop began to produce half an year ago with the hope that its production will be realized at the markets in Greece and Italy. The high production costs is the main problem of the company. The natural gas is the main raw-material that they want to buy at preferential prices. However the monopolist Bulgargas is increasing the prices permanently and at the moment it is putting on trial Belopel because of debts.
Source: Black sea (25.10.2000)

The price of the natural gas is increasing with 16.42 per cent up to BGN 312 with VAT added for 1000 cubic metres, decided the Government in a decree for defining the prices of the electricity and the natural gas. The reason for the increase is the highest prices of the fuels at the International markets and respectively of the deliveries of natural gas from Russia, stated the Chairman of the State Energetics Agency Mr. Ivan Shiliashki. The increase will be compensated with an additional subsidy from the budget for this year for the heating centers that amounts to BGN 16 million.
Source: BTA (03.11.2000)

The price of oil has risen 3 times for 2 years - from about USD 10 to USD 30 for a barrel. In Bulgaria this reflected more on the natural gas than on the petrol. The reason is in the defects of the contracts with Gasprom which Bulgargas signed and the Government approved in the spring of 1998. Now Bulgaria reduced the transit fee from USD 2.40 to USD 1.66 which Topenergy owed for the transport of 1000 cubic metres Russian gas at distance of 100 km on the traces to Turkey, Greece and Macedonia.
Source: Trud (08.11.2000)

The syndic association to Agropolihim - Devnia sent an open letter to the Prime Minister Mr. Ivan Kostov and the Ministers Mr. Petar Zhotev, Mr. Muravey Radev and Mr. Ivan Shiliashki. The association reminds that the permanent increase of the price of the natural gas that is the main raw-material for the production will bring the company to liquidation. According to specialists from the association during the summer of 2000 after the consecutive increase of the prices were approved measures for relieving of the fertilizer's plants.
Source: Black sea (09.11.2000)

The members of the Board of Directors of Belopal wiil discuss about the prospectives of the company and the ways of survival at the market. There may be some changes in the Board of Directors. At the moment is working only one work-shop and 2 weeks ago was closed another one. 150 workers were dismissed. At the same time Bulgargas wants to take the assets of the company because of unpaid debts. According to experts Belopal will sell a part of the productions. Beside this it will be looking for a buyer of the trade complex. 34 per cent of the assets of Belopal are privatised by Nash dom, 25 per cent are a property of Trud i kapital and the rest are allocated between the State and a MEBO formed in the plant.
Source: Black sea (09.11.2000)

The Deputy Prime Minister Mr. Petar Zhotev declared after a meeting with the Directors of the three fertilizers' plants Agropolihim, Himko and Neohim, that there will be initiated protective measures at the import of fertilizers. The reason for this is the new increase of the price of the gas which is the main raw-material for the production. According to Mr. Zhotev there can't be made any corrections and that is way the State could prevent the plants from the dumping outside. At the moment Himko is losing USD 40 per each ton but the plant won't stop its work, stated the Director of the company Mr. Valentin Dimitrov.
Source: Sega (10.11.2000)

Neochim JSC - Dimitrovgrad has paid the amount of BGN 10 million to Bulgargas JSC - Sofia. Thus the chemical plant's debts amounts currently to BGN 28 million. The profit of Neochim JSC for the first nine month of the current year is in the amount of BGN 58 million. The privatization of the company by the consortium Neochim Invest was completed on August 28, 2000.
Source: Pari (13.11.2000)

The everyday gas-supply will be allocated between 6 or 9 companies. The State will be separated to 9 regions for gas supply, said mr. Krassimir Popov, the Director of Gasstroymontage. The company will be included in the gas supply together with Overgas and Black sea technical company that are licensed for this service. Gasstroymontage will take part in the privatization of the 11th gas allocating companies of Bulgargas.
Source: 24 chasa (15.11.2000)

Bulgargas JSC will finish the year with a loss of over BGN 75 000. This was stated by the Executive Director of the company Mr. Ilia Ivanov. He said he could not define the exact sum of the loss but it has been considerable so far. The bad financial condition of Bulgargas SP JSC is because of the record high prices of the petrol at the international markets. The other reason is the delayed with three months raise of the prices of the gas with 16.5 per cent. It had to be efficient as of July but the Government decided to raise the prices as of September. Meanwhile the second Executive Director of the company Mr. Kiril Gegov confirmed the statement of Mr. Ivanov that the company is in bad financial condition in spite of the increased transit through Bulgaria of natural gas from Russia to Turkey.
Source: Standart (21.11.2000)

The Director of the Energetics Agency Mr. Ivan Shiliashki dismissed secretly two of the members of the Board of Directors of Bulgargas JSC. The members Mrs. Juliana Dimitrova and Mr. Jordan Krustanov were dismissed with an order of Mr. Shiliashki. Bulgargas will be managed by 5 instead of 6 people. The Chairman of the Board of Directors of the company remains Mr. Antoan Nikolov. The Chief Executive Director Mr. Kiril Gegov and the Executive Director Mr. Ilia Ivano kept their positions. The membership of the Board of Directors of Bulgargas JSC was decreased because of the difficult tasks that are connected with the reconstruction of the company and the problems with the high price of the natural gas, explained Mr. Ivan Shiliashki.
Source: Standart (29.11.2000)

The Chairman of the Board of Management of Agropolichim Mr. Vassil Alexandrov stated that the company may initiate legal measures against PA in order to receive a default because of non-execution of the privatization contract. According to the contract, the Agency had to pay half of the sum with which to be done a clearing of the old ecological pollutions at the territory of the plant. Agropolichim started to pay off its debt of the Vratza-based Himko to Bulgargas. In the plans of the owners of Agropolihim - Acid and Fertilizer are included a reconstruction of installations for fertilizers and their production. The profit of the company for 1999 will be used for covering of losses from past years, decided the General Meeting.
Source: 24 chasa (04.12.2000)

Agropolihim JSC will provide cheaper gas for Himko JSC, according to agreement of the Directors of the two fertilizers' plants. For the gas Himko JSC will supply carbamide for production of liquid fertilizers by Agropolihim JSC. The dealed quote between the plants for January 2001 is 20 000 t carbamide by March, 2001.
Source: Standart (14.12.2000)

The losses of the state-owned gas company Bulgargas JSC for 2000 will exceed BGN 75 million. The final data for the accumulated losse3s and the financial results of the company will be ready by the end of March, was specified from Bulgargas JSC. A month ago from the gas company declared that their losses will be about BGN 75 000. The hard financial state of the company is because of the raise of the petrol prices at the international markets during last year.
Source: Standart (04.01.2001)

Bulgargas JSC - Sofia starts to enlarge the gas-pipes to Turkey. The main contractor of the project, which includes construction of two gas-pipes with a length of 45 km, is Gasstroymontzh JSC - Sofia. According to the Bulgargas JSC investment programme the transited trough Bulgaria to Turkey quantity of gas will reach 14 billion cub meters this year.
Source: Pari (05.01.2001)

It is expected on January 12 the Court to declare the bankruptcy of Agrobiohim JSC-Stara Zagora by request of the biggest creditor - Bulgargas JSC. Most probably for syndic of the company will be appointed its former Director Mr. Stefan Mihailov. The chemical plants finished 2000 with a debt of BGN 95 million and with minus BGN 57 million shareholders' equity. The most attractive production of the company has been stopped for about 40 days.
Source: Sega (09.01.2001)

In 2000 to the consumers in the State were supplied 3417 million cubic metres natural gas that is with 5.07 more in comparison with 1999, stated the Executive Director of Bulgargas Mr. Kiril Gegov. totally for the countries from the Balkan region in 2000 were transported 11 894 billion cubic metres natural gas. According to Mr. Gegov this is with 14.20 per cent more than 1999 and with 57.54 per cent more in comparison with 1998. About BGN 140 million were spent from the investment programme and even though the company reported a loss in amount of about BGN 96 million for 2000. They were formed from additionally calculated taxes for 1997 at the amount of BGN 33 million and receipts of Bulgargas from Stoman at the amount of over BGN 35 million. During the last year the company contributed in the State budget BGN 220 427 153.
Source: Trud (11.01.2001)

The 15th round of the privatization is starting today. There are offered 2 completely major stakes, there are shares from big companies like Agropolihim-Devnia and Himmach-Haskovo. Many of the offered companies show considerable improve of the financial indicators during the 9th months of 2000. The biggest growth is reported for Monbat JSC-Montana and Agropolihim JSC-Devnia and for some smaller companies. Totally 2 million shares will be offered and for the first time will be offered Securities from drug companies, for instance from Aptechno-Sofia.
Source: Pari (16.01.2001)

Preliminary syndics entered the glass factory in Beloslav Belopal in accordance with a decision of Varna District Court. The control upon the activity of the company will have the same syndics who have managed Varna shipyards since 1999 - Mr. Dimitar Smilenov and Mr. Vassil Karagiozov. This measure was imposed by request of Bulgargas and includes a distraint on the property of the company. As of January 28, 2001 the plant owes the gas company BGN 3.7 million. As of January 1, 2001 Belopal has not got a contract with Bulgargas for selling of gas. The plant accumulated additionally a debt of BGN 2 million for the last 6 months.
Source: Black sea (29.01.2001)

The Executive Director of Overgas Inc JSC Mr. Sasho Donchev presented to the Mayor of Blagoevgrad Mr. Kostadin Paskalev a general scheme for the gas supply of the town. Overgas will invest USD 5.4 million. The project foresees to be gas supplied all industrial, public and administrative objects and 30 per cent of the households. The municipal objects will save about BGN 800 000 annually after the change of the liquid fuels with gas. By March 1 Overgas Inc will develop and will submit in Bulgargas a claim for permission for use of natural gas.
Source: Democracy (13.02.2001)

TPS-YUG Plovdiv owes funds to Bulgargas again. The reason for this is the disability of Plovdiv-based thermal station to gather the fees from its subscribers. Only 12 per cent from the accounts have been gathered since the beginning of the heating period and the debt to Bulgargas SP JSC exceeds BGN 2.3 million.
Source: Pari (14.02.2001)

The capital of the state-owned gas company Bulgargas JSC will be increased with BGN 140 million. The assets of the company have to be increased by March 15. At the moment the capital of the company amounts to BGN 512 691 000. The raise of the assets will be with the amount of the investment expenses at the execution of the Intergovernmental agreement as of December 31, 2000 that amount to BGN 140 million.
Source: Standart (16.02.2001)

The major owner of 83.6 per cent from the capital of the glass plant is Kitka-1 JSC. PA bought a minor stake of 25 per cent for USD 802 000, spaced out for 10 years and the rest stake was acquired by 2 former privatization funds. According to the Executive Director of the company Mrs. Galina Jordanova the reason to be delayed the owed contribution is that the plant was stopped for a half of year by Bulgargas in 1999. The company did not work because of not paid debts to the gas monopolist. Mrs. Jordanova also added that the company intended to pay by the end of the year the whole price with Compesatory Vouchers.
Source: Capital (17.02.2001)

The new name of the owner of Kremikovtzi metal works is Finmetals Holding, according to the promulgated in the State Gazette announcement of Sofia City Court. The company owner of the plant was called Daru Metals. The new company Finmetals will take only the finance of the production and the trade will be carried out by the already registered Kremikovtzi Trade, said the executive director of Kremikovtzi Mr. Valentine Zahatiev.
Source: 24 chasa (21.02.2001)

Licenses for activities in the area of energetics gave State Commission for Energetic Resource t6o nine companies. NEC JSC Sofia received the right to produce energy from Maritsa-Iztok 3 for a term of ten years. For the activity production of electro-energy from HPS the company received rights for 25 years and for distribution of electricity on the territory of Bulgaria the license is for 35 years.
Source: Pari (22.02.2001)

Agrobiohim has BGN 35 million assets and BGN 96 million debts. The plant can cover only one-third from the receivables of the creditors. At first place among the creditors is Bulgargas with BGN 48.8 million and the second place the National Electric Company with BGN 19 million. The case was called off for March 28. Then is expected the Court to declare Agrobiohim in insolvency and to define a temporary syndic. The production of the company stopped 2 years ago and in it are working 180 employees.
Source: BTA (26.02.2001)

The District Court proclaimed Agrobiochim insolvent. A procedure in insolvency was opened, added Mr. Stefan Saranendelchev, Deputy Chairman of the Stara Zagora District Court. A three-member temporary syndic was appointed. The first meeting of the creditors was set for March 23. The lawsuit was initiated after the claim of Bulgargas, which credited the company with BGN 48.8 million. The debts of Agrobiochim amount to BGN 96 million.
Source: Sega (01.03.2001)

With a decision of February 27, 2001 Sofia Appeal Court confirmed entirely the decision of Pernik District Court as of July 10, 2000 for approval the reconstruction plan of Stomana JSC. With it was rejected the complaint of Bulgargas. The Court approves the concept set in the reconstruction plan that the creditors from 4th grade among which is also Bulgargas, will not receive certificate. In Stomana now are working 2 500 employees with an average working salary of BGN 403.
Source: BTA (05.03.2001)

The temporary syndics of the glass plant Belopal Mr. Dimitar Smilenov and Mr. Kiril Karagiozav were dismissed with a decision of Varna Appeal Court. The total amount of the debts of the plant to Bulgargas is about BGN 9.5 million. On March 1 was deposited a new court-accounting expert opinion. The amount of the debt is not important at this case but the stopping of payments which is a reason for declaration of insolvency.
Source: Black sea (05.03.2001)

A corporate WAN network will connect a Sofia-based office of Bulgargas and the local networks in 13 sections in the State. After an auction, the project for the construction was won by Prima Soft, Certified Partner of Cisco Systems.
Source: ComputerWorld e-Daily (12.03.2001)

Varna District Court will decide for the bankruptcy of the glass plant Belopal within a month. The declaration in insolvency of the plant was required by Bulgargas and State Claims Agency. As of the end of February, 2001 the company owed BGN 9.822 million to the gas company and BGN 1.309 million to the National Security Institute. If the strategic programme for development fulfils and the receipts from the other companies are gathered, there will be enough funds to cover the debts of the company.
Source: Pari (19.03.2001)

The Energetics Agency has not still considered the offer of Bulgargas for increase of the capital of the company. According to decree of the Council of Ministers the assets of the company had to be increased by March 15 with the amount of the investment expenses for the last year that amount to BGN 140 000. At the moment the assets of Bulgargas are BGN 512 691.
Source: Standart (22.03.2001)

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)

The opportunities of restoration of the production and development of the reconstruction programme of Agrobiohim are minimum and risking. That is why Stara Zagora-based plant will be sold off in parts, became clear at the General Meeting of the creditors. This decision was also accepted by the main creditors Bulgargas with receipts BGN 48.8 million. The plant owed to 22 legal entities and 5 foreign companies totally BGN 95.7 million. The unpaid salaries of the workers are in amount of BGN 2.6 million and the assets of the company at the moment are a little over BGN 36 million. However they cover only 38 per cent of the total receipts.
Source: Standart (26.03.2001)

One of the two permanent syndics of Agrobiochim, selected by the General Meeting of the creditors, is occupied with work and hardly will find time for the fertilizer plant. This was declared by the representatives of the two syndicates KNSB and KT Podkrepa. The lawyer Mr. Dimitar Smilenov at the moment is also syndic of Varna shipyards JSC, BINDL-Energia JSC - Sofia, EKKO-ET JSC - Etropole.
Source: Standart (28.03.2001)

One of the constant supervisors of Agrobiochim - Stara Zagora elected by the General Meeting of the creditors is very busy and will not have enough time for the fertilizing factory. This was announced by the representatives of the two trade unions SITUB and KT Podkrepa yesterday before the first official meeting with the supervisors of the declared for bankruptcy factory. The lawyer Dimitar Smilenov at the moment is a supervisor of the Varna Shipyard JSC, BINDL - Energia JSC Sofia, and is a liquidator of three other companies as well..
Source: Standart (28.03.2001)

A Court claim slows down the negotiations with a foreign investor that has an interest in Pernik-based Stomana, declared the Director of Metalitzi to KNSB Mr. Vassil Janachkov. The claim is from Bulgargas that litigates the reconstruction programme of the company and wants it to be stopped. The gas monopolist insist Stomana on starting the payment of its debts. According to the reconstruction programme Bulgargas is a creditor 4th grade and will receive its funds last. The argues prevent Eurometal, an owner of 50 per cent of Stomana from the negotiations for establishment of joint-ventured company with a foreign investor.
Source: Sega (05.04.2001)

The syndical leaders from the state-owned company Stomana JSC - Pernik that is in insolvency threatened with protest activities in case the Government does not make Bulgargas to retract its claim against the reconstruction plan of the company.
Source: Dnevnik (06.04.2001)

Bulgargas will increase its capital and in this way will secure the expenses for construction when the State cedes to the gas monopolist the incomes from transit fees. The company will increase its capital to BGN 652 000 through issuing of 10 000 with face value BGN 10 per each. Bulgargas is 100 per cent state-owned company. Meanwhile the company reported a total loss of BGN 94.49 million for 2000 and is due to the sales of natural gas under the prime cost.
Source: Dnevnik (11.04.2001)

US company is interested in the production of Luxury glass, Beloslav. The interest of Lenox was directed mainly to the decorated glass production of the company. If it reached to a deal, the company will invest in the construction of new production furnace that will guarantee additional 100 work-places. Within a week the Court has to pass judgement on the claim for insolvency of Belopal, contributed by Bulgargas and State Claims Agency. The debts to them exceed BGN 12 million.
Source: Black sea (11.04.2001)

According to the syndicate (KNSB) the Greek group Viohalko wants to invest USD 50 million for renew of the production capacities of Stomana JSC in Pernik. But this may happen after the restructure of the property and at execution of the reconstruction programme for the company. The accepted reconstruction programme for the company was disputed only by Bulgargas SP JSC, reminded KNSB. BGN 28 million are the debts of Stomana JSC to Bulgargas. If Stomana - Pernik is declared in liquidation, 2 333 will remain without work.
Source: BTA (12.04.2001)

Bulgargas withdrew its claim against Stomana in Pernik Appeal Court, was reported from the Ministry of Economy. The Management of the company sent an informing letter for its decision to the Minister of Economy Mr. Zhotev. The debts of Stomana amount to BGN 180.953 million from which the receipts of Bulgargas are BGN 33.5 million. Since Stomana pays its current accounts, its debts to Bulgargas reduced to BGN 27 million.
Source: BTA (13.04.2001)

Bulgargas will invest BGN 97,6 million this year in construction of new objects of the transit gas-supplying system. A part of the money will come from the budget. This will allow the transit of Russian nature gas to Turkey, Greece and Macedonia to reach 18 billion qubic meters. For the reconstruction of Kardam 2 compressor station will be invested BGN 21,9 million and for the building of Provadia compressor station will be given another BGN 5 million. The reconstruction of compressor station Strandzia will cost BGN 22.4 million.
Source: Democracy (13.04.2001)

Stomana - Pernik increased its export for Italy over the first months of this year. While over the last year for this country was realized export of 3 000 - 4 000 t, at the moment there are being sold 3000 t steel per month. The company is the biggest buyer of scraps from ferrous metals in Bulgaria and processes about 40 000 - 50 000 t scrap per month. The factory has been in procedure of insolvency since 2000 and the metallurgic production is rented by Eurometal Ltd. The debts of Stomana are BGN 180 953 201. The Greek group Viohalko takes interest in the company.
Source: Dnevnik (18.04.2001)

Varna District Court refused to accept the procedure of insolvency for the glass plant Belopal. The magistrates rejected the claims of State Claims Agency and Bulgargas. The difficulties of the plant are temporary and the company can deal with them if it covers its debts, distributes ready production and starts a strategic programme for development. The plant will receive BGN 6.177 million from the sale of the not used work-shops and equipments, BGN 5 million from realization of production and BGN 2.427 million are the receipts of the plant.
Source: Standart (19.04.2001)

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 final restructure of Stomana may finish earlier than the expected in the reconstruction plan 5-year deadline, declared the Deputy Prime Minister Mr. Petar Zhotev. The reconstruction programme of the company will go on when Bulgargas withdrew its claim for declaration of Stomana in insolvency. The total amount of the debts of the company amount to DEM 300 million and the evaluation of the assets exceeds DEM 40 million. For the first quarter of 2001 the profit realized by the detached part Stomanodobiv is in amount of BGN 1.2 million. Buyers of 13 detached parts from the structure of Stomana were selected.
Source: Standart (28.04.2001)

The fertilizer plant Himko finished the financial 2000 with a loss of BGN 12 million, announced the Director of Board of Government Mr. Valentine Dimitrov. According to him this result is good considering the fact that in 1998 Himko finished with a loss of BGN 49 million. The Directors of the plant expect to realize a profit in 2002. Over the last year were paid debts of BGN 7 million of Himko to Bulgargas. For the same period the Management invested USD 2.8 million in the reconstruction of equipments and machines in the plant.
Source: Standart (08.05.2001)

The state-owned gas company Bulgargas required from Gasprom changes in the contract for delivery of Russian natural gas. The contract was signed with the subsidiary of the Russian company Topenergy. The contract was signed in April 1998 and allows after 3 years the items to be redealed. The contract envisages over this year the deliveries of gas to reach 5.7 billion cubic metres at the real consumption over 3 billion cubic metres and in 2002 they to be 6 billion cubic metres. Bulgargas pays to the Russian gas company defaults of 75 per cent for the declared but not used quantities.
Source: Dnevnik (10.05.2001)

Eurometal JSC and the biggest Greek company for manufacture of profile steel Sidenor that is a part of Viohalco holding, dealed the participation of the Greek company in the shareholders' equity of Stomana industry JSC. Stomana industry is the branch of Eurometal in Pernik and is expected the company to acquire the major assets of the state-owned company for production of steel products Stomana-Pernik after finishing the necessary legal procedures. Stomana industry JSC is in process of evaluation of investment programme for modernization of the production capacities for increasing its productivity and competitive power.
Source: Pari (10.05.2001)

The Greek metallurgic holding Viohalko that is an owner of the plants Sofia med and Stilmed will buy a part from Stomana, Pernik. 25 per cent from the capital of Stomana - Pernik were privatized over the first wave of the mass privatization and the rest 75 per cent are still property of the State. Viohalko will finance the buying-up of the assets from the subsidiary of the present lodger Eurometal - Stomana industry JSC. The negotiations between the two companies are still finished. It was also signed a preliminary agreement and is expected Stomana industry to become the owner of the plant by the end of the month. it is only known that the initial investments will be about EUR 100 million.
Source: Standart (14.05.2001)

The Manager of Petreko SARL Mr. David Archer declared that over the winter of 2002 the company expects to start a real extraction of natural gas from the field near Galata. Until then the negotiations with the clients of the gas field have to finish. There has already been signed a memorandum for agreement with Bulgargas. The contract with Petreko is for 25 years but on real the life of the field is evaluated between 4 and 5 years. According to the contract the company is engaged to invest at least USD 49 million but the amount will reach USD 65 million over the next 2 years.
Source: Dnevnik (17.05.2001)

Bulgargas declared that is going to separate the allocating networks in 8 companies in different regions of the State with which starts the restructure of the company. The new regions are Dobruja, Dunav, Mizia
Source: Dnevnik (23.05.2001)

The representation of the Greek group Viohalko for Bulgaria announced that their company Teprometal SP Ltd. won an open-bid tender for one of the work-shops of Stomana - Pernik. The Greek company will also buy the rest of the company but in partnership with Eurometal. The deal for Stomana will be finalized within 10 days, said Mr. Anton Petrov who is Executive Director of Stilmet JSC and representative of Viohalko for Bulgaria. The price at which the buyer won the work-shop is BGN 7.2 million.
Source: Dnevnik (28.05.2001)

Bulgargas JSC will open a new compressor station in Provadia on May 30, announced from the company. The general executor of the object was Glavbolgarstroj.
Source: Monitor (28.05.2001)

By 20 per cent from BTC, DZI, DSK, Navigation Maritime Bulgare, NEC, Bulgargas, Bulgartabac and Trade Bank Biohim will be launched for privatization against Compesatory Vouchers. This will be a part of the election programme of National Movement Simeon II (NMS II). The economic team of NMS II developed offers that will create a real market of Compesatory Vouchers. Beside this the trade with Compesatory Vouchers will be remitted and will be made an uniform register for all Securities and will be listed on the Stock Exchange.
Source: Standart (31.05.2001)

United Democratic Forces will lobby in the new parliament a law that will arrange the duties of Himko to Bulgargas to be passed. Mr. Asen Agov, the leader of the list in Vratza, announced this. The plant for fertilizers owes USD 60 million to Bulgargas. In the State Budget there is Reserve fund from which money can be taken for the sink of the debts. This may be done only if there is a law. According to the Finance Minister Mr. Muravej radev, if this is done, the credit rating of Himko will be increased. The fall of the prices of carbamide to USD 73 for single ton forced Himko to stop the production of the combine until August.
Source: Standart (01.06.2001)

The scandal with the retirement of Rem Vyahirev is Russia's domestic matter, but it will adjourn the negotiations with Gazprom on Russian gas delivery, said Ivan Shilyashki, State Energy Agency's chairman, yesterday. The reshuffles in the Russian gas giant won't affect the relations between Bulgaria and Russia, Shilyashki maintains. Bulgaria on behalf of Bulgargas is a correct payer of Gazprom. Bulgargas is one of the few companies, customer of Gazprom in this region, to pay effectively for the supplied natural gas. 'The agreements between Bulgaria and Gazprom won't be changed', Shilyashki is flat. In mid-May the managing body of Bulgargas sent an offer to Gazprom to change the methodology of calculating prices of the Russian gas Bulgaria is supplied with by the subsidiary companies Topenergy and Gazexport. They have received no reply till now.
Source: Standart (01.06.2001)

The State Agency of Energetic and Energy Resources announced the regions in which new gas-supplying systems will be constructed. There are 8 regions in which the gas nets will be constructed. According to expert economically effective will be the gas nets only in the big towns. According to the model in every of the 8 regions there will be at least one big town. It is expected the big towns to be gasified first. The investors are obliged to examine for new objects regularly and to connect every customer to the net if it is profitable. This is in force to Bulgargas too. Licenses for all users that have agreements with Bulgargas will be issued. Almost all of them are industrial plants.
Source: Capital (06.06.2001)

Bulgargas started negotiations for changes in the contracts for deliveries and transit of Russian natural gas with Gasexport, the susidiary of Gasprom whose activity is export of gas. A month ago Bulgargas required changes in the contracts. The Bulgarian side insists on decreasing of the base price and the quotes for delivery. According to the contract Bulgargas pays 75 per cent of the not received but appointed quantities.
Source: Dnevnik (07.06.2001)

Varna District Court rejected the claims of Bulgargas - SP JSC, Sofia and the State Receipts Agency - Sofia against Belopal - JSC, Beloslav for opening of a procedure of insolvency of Belopal - JSC, Beloslav.
Source: State Gazette (08.06.2001)

Bulgargas and NEC are preparing to enter in the telecommunication branch as operators of nets for fixed telephones. The national gas supplier intends to compete with BTC after its monopoly finishes on January 1 2003, announced the chief executive of Bulgargas Mr. Kiril Gegov. The project of the company is to start telecommunication services. Bulgargas has its own net that serves its own needs. It is built of copper cables that are near the gas-supplying system. The general length of the gas-supplying net in Bulgaria is 2800 kilometers. The company is constructing a new digital system and until the end of the year there will be 350 kilometers of optic cables. Bulgargas has invested in satellites so far. A typical example for the participation of gas-company in the telecommunication business is the Russian Gasprom. It has a satellite Jamal 100 since 1999. It is used for transmission of 12 digital televisions. The plans of NEC to enter the telecommunication branch were announced by the chief executive of the company Mr. Danail Tafrov. It has an optic cable from Sofia to Plovdiv. It is expected a new optic cable connecting Sofia with Mizia to be constructed soon. In four years time, the company will have optic cable net connecting Sofia - Plovdiv - Bourgass - Varna - Pleven - Mizia. There is an optic cable connecting Bulgaria and Turkey too.
Source: Capital (09.06.2001)

Stomana industry became owner of 50 per cent of the assets of Stomana-Pernik, was reported from the Ministry of Economy. Stomana industry is 100 per cent property of Eurometal Ltd-Pernik. The transfer of rented assets from Stomana in Stomana industry is a part of the reconstruction programme in which is said that the assets will be rented with a next clause for buying out. Stomana has debts of USD 80 million. The planned investments in Stomana will be between USD 60 and 100 million.
Source: Pari (18.06.2001)

Bulgargas will stop delivery of oil for TEC-Shumen, if the local Tofikacia does not pay its debts till 15 July, announced the chief of Toplofikacia-Shumen Mr. Martin Donev. This date when the term of instelment payment expires. The company ows BGN 2 million for last year. Main debtor of Toflofikacia is the people. Municipality Shumen ows BGN 600 000. If the clients do not pay the company we will not be able to discharge our duties over the agreement, explains Mr.Donev. In this situation at the end of the prophylaxis period Shumen's households will not have hot water.
Source: Monitor (06.07.2001)

The Price of the steel will rise with 4 per cent by the end of this year because of the high prices of of the energy resources and the larger expenditures for purchase of ores. Bulgaria follows strictly the limitations for the export and is already out of the Black list of the countries that make financial dumping, announced the executive director of Kremikovtsi Mr. Valentin Zahariev. The metallurgic giant has already paid BGN 400 million from the total quantity of BGN 850 million debt to the National Insurance institute. It pays its bills to NEC and Bulgargas on time.
Source: Monitor (13.07.2001)

The National Electric Company sent during last week an official letter to the management of Chimko that because of the irregular payment of the debts from the fertilizer plant it intends to get an executive letter, announced Mr. Danail Tafrov, executive director of NEC. The debt of the plant in Vratsa is about BGN 20 million. Few months ago Chimko used to pay its debts in accordance with the plan for the implements but recently they stopped to service the obligation. NEC does not intend to stop the electricity supply for t5he plant because does not have the technical opportunity to do it. The financial director of the plant Mr. Plamen Jordanov explained that during March was signed a contract for the Implement payment but refused further comment. According to the Law for the State Budget for 2001 for the payments that are not received by NEC in term the monopolist could get an executive letter on the grounds of the bills if the they have not been paid after receiving a written invitation in term days. If the debtor does not pay in the plant will enter an executive judge who will sale the property of the plant until the creditor is satisfied
Source: Capital (15.07.2001)

A year after the privatization of Neohim-Dimitrovgrad , a plant for fertilizers , the managerial works hardly and purposively for the development of the company. Now 1600 employees work in the plant and the average salary is BGN 400 . In comparison to season 1999-2000 this season the sales are more than 200 000 tons.
Source: Pari (16.07.2001)

The monopoly in the deliveries of energy and power is not good for the ceramics plants. Every deliverer is strong . An example for this is the situation from last year when all factories united against the high prices in Bulgargas.Within the end of 1999 the plants used to provide raw materials extremely from domestic producers and they tried to reach the quality and efficiency of the materials from the foreign market. Since 2000 the plant works only with materials from great Britain, Germany, Checks republic. After the privatization of kaolin the situation is getting better.
Source: Capital (22.07.2001)

Bulgargas drawed over the last few days a considerable amount of its funds in Economic and Investment bank. The state-owned gas company is now being serviced by Bulbank, Biohim, Municipal bank, Rosseximbank and Economic and Investment bank. Bulbank and Biohim are also creditors of Bulgargas.
Source: Trud (23.07.2001)

The vice-minister and Minister of Finance Mr. Vasilev announced that the program of the government in the area of energetics is directed towards full privatization and liberalization of the sector. The Government hopes that the contracts with the American companies AES and Entergy will not enter into contradiction with the program of the Government. It is expected that at the second wave of privatization on the capital market will be released some parts of NEC.
Source: Capital (29.07.2001)

Until the question for the government was discussed apparently by someone’s 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)

According to the report of the expert- accountant Hristina Vucheva Stomana JSC finishes the year with a loss of BGN 46 713 000. The procedure for bankrupt could not be accomplished as the plan for strengthening is finished as one of the creditors -Bulgargas stopped it. The company has a negative value of the own capital in size of BGN 46 713 000. Compared to 1999 there is a slight improvement of the financial state of Stomana, reported the expert-accountant. Valentin Bakalov Executive director of the Stomana explained that the plan for strengthening is based on a sum BGN 42 700 000 as minimum that Stomana has to receive from the sale of the separat5ed 56 objects.
Source: Pari (08.08.2001)

The biggest glass-factory in the country Diamand Razgrad ceased its manufacture. The reason for stopping the work of the factory is that it owes to Bulgargas BGN 8.827 million. The management of the factory handed its resignation and announced in a declaration that the development of the factory is impossible because of the investments, old technologies and too high consumption of energy. The executive manager Emil Giurov and the supervisor Mr. Lefter Lefterov who present the Working-managing company /WMC/ in the Board of Directors have sent a letter to the PA for disclaim of the contract for sale because of impossibility to pay the implements. Mr. Giurov explained that it is very hard to run an enterprise owned by four proprietors with equal shares who do not invest in the manufacture. Apart from WMC these are the privatization funds Bulgaria Holding Company Trud i Kapital and Orelinvest.
Source: BTA (13.08.2001)

On June 30, 1999, 75% of the assets in the Radomir-based plant Leko Ko (a former division of the one-time metallurgical giant, built in Chervena Mogila) were sold at BGL9BN (before the BG lev's denomination) to a consortium between the management-employee company (MEBO) Radomir-Leko Ko-Invest and the private Eurometal OOD. The buyers undertook a commitment to invest in the enterprise the huge amount of BGL11.6BN (prior the BG lev's denomination). This promise, however, remained just a promise, and in end-May 2001 the Executive Director of the Privatisation Agency Plamen Stoilov, responsible for post-privatisation control, announced that defaulted owners of the metallurgical plant will have to pay a substantial penalty exceeding DEM2MN. Meanwhile, shareholder castlings were made in the company. Kalin Rushkov-procurator of the companyq announced that Eurometal ODD sold its 34% share participation in Leko Ko to the US company I Fai, registeerd in the offshore zone of Delaware. The remaining 41% of the company's assets are in the hands of the MEBO Radomir-Leko Ko-Invest, and 25% are held by the State. Until then the company was managed by the executive director Sabin Spahiev. Nearly 98% of the plant's output is intended for export - Sweden and Finland, Denmark and Germany. We are presently working with International Bank for Trade and Development. And Bulgarian Post Bank allocated us a credit of BGL2MN, which enabled the new management to put the plant's equipment back in operation. We are now holding negotiations with ROSSEXIMBANK for getting a turnover credit from it.
Source: Banker (20.08.2001)

The fertilizing factory in Stara Zagora - Agrobiochim will be declared in bankrupt on 12 September. "I do not remember someone up to this moment to have proposed a reconstruction plan for the factory," said the syndic of the factory. On 12 September will be conducted a General Meeting of creditors of the bankrupted factory. In the agenda are included a report for the state of the assets of the company and selecting of the method of evaluation of the property. Then have to be elected the team of experts that will make the evaluation and their salaries. Probably this is the date when the biggest factory for fertilizers on the Balkans will be declared in bankruptcy. At least two months need the experts in order to determine the money value of the assets of the factory.
Source: Monitor (21.08.2001)

Agropolihim JSC together with Bulgargas SP JSC received license to build 2.5 km gaspipe from Strashimirovo to Beloslav, was reported from the company. The total investments on the project of the owner Acid and Fertilizers amount to BGN 900 000.
Source: Sega (22.08.2001)

Three people from the Boards of NEC and Bulgargas are replaced with an order of the Chairman of the Energy Agency Mr. Milko Kovachev. In the Board of Directors of NEC are appointed Mr. Angel Minev, the Deputy minister of Economy Mrs. Sofia Kasidova and Mr. Vladimir Hristov. From the Board are dismissed the Chairman Mr.Milcho Golemehov, his deputy Mrs. Paraskeva Kiseva and the deputy Executive director Mrs. Lilia Ivanova. Mr. Slavho Neikov from the State Commission for Energy regulation enters the Board of Bulgargas. The Deputy of Mr. Milen Velchev in the Ministry of Finance Mr. Krasimir Katev and the Deputy Chairman of the Energy commission Mr. Gati al Djebury are the newly appointed in the Board of the State Commission.
Source: Standart (13.09.2001)

The debts of the subscribers, municipalities and budget organizations to the thermal supplying companies are considerable and this threatens the new heating season, declared the Deputy Chairman of the State Energetics Agency Mr. Al Jeburi. The debts of the subscribers are BGN 91 million and the municipalities owe BGN 18.5 million. All thermal supplying companies owe to Bulgargas BGN 78.3 million and Toplofikatzia - Sofia owe BGN 62 million for coals. 8 thermal supplying companies will define themselves the prices of the heating services over the new season, not the Council of Ministers.
Source: Dnevnik (21.09.2001)

Deputy Minister of Economy Ms. Luibka Kachakova wants to see in details the scheme for the barter agreement between Bulgargas and the Russian concern Topenergy for delivery of a natural gas in Bulgaria against Bulgarian goods. According to her this is an agreement between the two companies and these are not governmental agreements. She said that Bulgargas will pay Topenergy and a Russian company, exporter of oil gives 20 per cent of the turnover as construction works to Glavbolgarstroy. Ms. Kachakova explained that the Government prepares this programme for strategic taking back of markets, one of them is the Russian market.
Source: Dnevnik (21.09.2001)

The fertilizer plant Chimko may start working this week. It is expected today to be signed a report for rescheduled payment of the debts to Bulgargas. The American company I B & Trans that is a major owner, received old debts in amount of BGN 71 million. From them BGN 20 milllion have already been paid. The world prices of the carbamide dropped to USD 73 per ton and this was the reason the Management of Chimko to stop the production for about 4 months. During that time in the plant were made repair of the manufacture capacities. The investments are for over BGN 1 million.
Source: Standart (24.09.2001)

The fertilizer plant Chimko restored its manufacture of carbamide after a 4-month repair and will start to pay its debts to the farmers. It is expected within the end of October the capacities to be loaded by 75 per cent. The delay of the declared quantities is due also to the prolonged negotiations with Bulgargas for rescheduled payment of debts of BGN 51 million, was reported from the company.
Source: BTA (02.10.2001)

Razgrad District Prosecutor Mrs. Elena Hadjidimitrova requested from PA the privatization deal for Diamant JSC to be revised and the sale of self-contained parts of the company - stopped. The magistrates are investigating the sale of the biggest glass factory in Bulgaria. Since 1997 Diamant JSC is 100 per cent private property. The company was privatized during the mass privatization in 1996 and its sale was finalized during the Government of Mr. Ivan Kostov. The last share of 26 per cent was gained by MEBO Diamant Prima. During the next four years the factory for glass and porcelain reduced its manufacture. In 2001 representatives of the MEBO requested the deal to be broken as they were not able to pay their implements. The Executive Director of the company Mr. Emil Gyurov explained that the absence of a majority owner is an obstacle for the investment process and the old equipment makes its production incompetitive. Meanwhile because of its big debts Bulgargas stopped the gas-supply for the factory and its work was stopped. During September representatives of Shisherjam and Glaverbel - the two concerns world leaders in the production of glass are interested in the purchase of the production stations. Both companies are ready to construct a joint factory on the Balkan peninsula and they announced that the factory in Razgrad attracts them with its location near the deposits of resources, its excellent infrastructure and its experts. The negotiations with the potential investors continue.
Source: BTA (02.10.2001)

The company in Russe Gazprom has reject in May this year the request of Bulgargas for review of the price of the natural gas for Bulgaria. The motif of Gazprom is that for the pewriod April 1998 to April 2001 when the present methods is applied the average price of the natural gas for Bulgaria has increased with 1.48 per cent only.
Source: Trud (03.10.2001)

At a meeting between the Municipality and the management of Toplofikatzia were revealed the problems of the forthcoming heating season. According to the Director of Toplofikatzia Mr. Angel Angelov the normal work of the company in the winter is only guaranteed with the gathering of all accumulated debts from the population, companies and budget organizations that amount to BGN 4 143 000. By the end of October Toplofikatzia - Vratza has to pay BGN 220 000 to Bulgargas. The amount is a part of the debt to the company that totally amounts to BGN 390 000. The deal with Bulgargas is the whole sum to be submitted by the end of the year.
Source: Shans Express Vratza (05.10.2001)

The price of the gas will fall down with BGN 12 per ton during the next 2-3 weeks. The reason is the decrease in the price of the gas on the international markets. After the last change of the prices LUKoil Neftochim sells the gas for BGN 732 per ton with Added Value Tax. The price at which the energetic companies sell the fuel does not cover their expenditures. The price at which NEC sells the electricity is equal to the price at which it purchases it from the power stations. The expenditures for the transmission of the energy are added to the value. The average salary in the energetic sector is BGN 406 and for the past three years the salaries have not been changed.
Source: Standart (08.10.2001)

The non-paid accounts of the population, budget organizations and companies to Toplofikatzia - Vratza exceed BGN 4 million, announced the Director of the company Mr. Angel Angelov. The subscribers in Vratza may remain without heating in the winter because Toplofikatzia itself accumulated debts to Bulgargas and Chimko.
Source: Democracy (08.10.2001)

Representatives of Bulgargas requested from Razgrad District Court Diamant JSC to be declared in insolvency. The glass factory owes to the state company about BNGN 9 million. During 2001 Bulgargas stopped the supply with natural gas and the work of the furnaces was ceased. Apart from the gas-supply company a claim at the court has applied a sole proprietor from Razgrad, who have claims for BGN 300 000. The court decided financial experts to enter Diamant. The experts have to find out if the company may attend its debts. If it is in insolvency a procedure will be opened and its management will be taken by syndics.
Source: Standart (15.10.2001)

Three new auctions for the sale of the property of Agrobichim -Stara Zagora will be conducted in the beginning of November. At them will be sold wagons, fire equipment and palladium. The debts of the bankrupted factory are more than BGN 90 million. The interest by this moment is more than BGN 2.5 million. Among the biggest creditors of the factory are Bulgargas - with BGN 53 million and NEC - with BGN 18 million. The public claims are BGN 1.805 million. The syndics of Agriobiochim initiates court cases with Folbek Bulgaria and other owners of detached branches of the company.
Source: Standart (15.10.2001)

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)

Toplofikatzia Plovdiv may be pass to working process with oil residue if from Bulgargas stop the supplies because of the accumulated debts. BGL 7 950 000 are the old debts for natural gas which the company has to cover within the end of October, in accordance with the contract with the company supplier. In order to be paid this money has to be taken from the subscribers. The first implement to Bulgargas had to be paid before the end of September but the collectors did not gather the money. The biggest debtor is the municipality of Plovdiv.
Source: Monitor (17.10.2001)

The Russian oil company LUKoil takes interest in the privatization of Bulgarian bank sector and in the gas monopolist Bulgargas, declared the General Director of LUKoil Bulgaria Mr. Valentine Zlatev. According to him a structure of such a scale needs own bank that will service the financial operations of the group. Mr. Zlatev did not hide the opportunity of participation in any of the banks and one of the alternatives for this is the upcoming privatization of Biochim. The intentions of the Government are within the end of the year the bank to be sold. He denied the alternative LUKoil to be a candidate for the state-owned share in Central Cooperative Bank.
Source: Dnevnik (17.10.2001)

Within the end of October the Bulgarian country has to announce in front of Gasprom the quantities of natural gas which the company will consume. The expectation for the consumption are about 3.4 billion cub.m. The account profit of Bulgargas for the ninth months since the beginning of the year is BGN 23 million.
Source: Dnevnik (22.10.2001)

The unpaid obligations of the heath-supply companies to Bulgargas will be changed to state bonds, issued by the Ministry of Finance. This project is included in the programme for reconstruction of the State Energy Agency. The heath-supply companies have to pay their debts to the gas monopolist through the state securities. Bulgargas will present the securities for cashing at the Ministry.
Source: Dnevnik (22.10.2001)

The treasury will gather 80 per cent of the net profit of the state-owned companies for 2001 as a dividend. The dividend for the state-owned companies defines with a decree of the Government in the end of every year. The state-owned monopolists BTC, Bulgargas, NEC, Bulgartabac, Bulgarian posts and others will bear the most considerable losses in connection with this measure.
Source: ComputerWorld e-Daily (24.10.2001)

The Municipality of Vratza has transferred to Beloizvorski Cement a sum of BGN 110 000 as a compensation for over-taxing for profit, as it appeared that the positive financial result of the company is lower the expected. This year the municipal budget has lost one of its sources of incomes as Bulgargas reported no profit for 2000 and thus its branch in Chirpan applies no profit tax.
Source: Shans Express Vratza (30.10.2001)

186 companies will not be privatized when the new Privatization Law becomes efficient, decided the Government. Among them are NPS Kozlodui, Bulgargas, BDZ, airports, ports, Bulgarian posts, water and sewerage companies in 29 towns.
Source: Standart (30.10.2001)

Varna Appeal Court postponed the case for declaration in procedure of insolvency of the glass plant Belopal in Beloslav. In the end of 2000 State Claims Agency submitted a claim request because of debts to the National Social Security Institute for BGN 1.5 million. Bulgargas has stopped the deliveries for the plant since the beginning of the year and it does not work practically.
Source: Standart (31.10.2001)

The fertilizer plants want again to buy cheaper gas and to introduce fees at the export of competitive production. This was declared by the newly established Association of the fertilizer plants which includes Chimko-Vratza, Agropolihim-Devnia and Neochim - Dimitrovgrad. At the moment Bulgargas sells the gas at BGN 300 per 1000 cubic metres without VAT. At direct deal of the import the price may drop with 30-35 per cent.
Source: Standart (15.11.2001)

Delegations of the Black Sea Trade and Development Bank and of the International Financial Corporation, which is a part of the group of the World Bank. negotiates in Bulgaria for the opportunities and conditions to credit the extract of natural gas from the deposit near Galata. Mr. Hulrez Hoda and Mr. Ahmed Kabeily, representatives of the corporation and Mr. Konstantin Limitovski from the Black sea Bank had negotiated with the Bulgarian branch of Petreko S.A.R.L. - titular of the concession contract for extraction of the natural gas at Galata. Both international financial institutions are ready to develop a consortium and their representatives have been negotiating for the conditions for a credit of nearly USD 50 million. The credit will provide nearly 76 per cent of the financing necessary for the construction of the infrastructure for extraction of natural gas,.
Source: Banker (19.11.2001)

The Executive Director of Bulgarian State Railways (BDZ) Mr. Vladimir Dunchev offers to the Ministry of Transport and Communications to increase the capital of the company with BGN 130 million, just like the amount of the debts to the State. The increase of the capital has to be executed before the separation of the railway company in two companies - for infrastructure and for transport. The aim of the operation is the two companies to remain without debts to the State and workers. At the moment the capital of BDZ is BGN 200 million.
Source: Dnevnik (21.11.2001)

Hemimont-Smartkom won the auction announced by Bulgargas for the delivery of 105 km. fibres optic cable. Among the competition of 12 companies its offer of the system integrator Hemimont-Smartkom took the first place. The contract for the delivery was concluded in the beginning of November. This will be the first installation in Bulgaria of optic cable, produced by Lucent Technologies with the standard G.652 fibres.
Source: ComputerWorld e-Daily (21.11.2001)

Since the beginning of last year all installations in the fertilizers plant in Vratza have stopped working. On Monday the trade union organizations in Chimco started a protest note against the ceasing of the activity. Bulgargas sent a fax that the gas-supply of the plant will be stopped because of the debts it has accumulated. From the management of the plant announced that the work is stopped because of the high price of the natural gas and the cheap export of carbamide through Rumania. According to the requests of Bulgargas the thermal station will also be stopped on Tuesday. This will be the physical end of the plant as without thermal energy the installations will freeze. The Executive Director of the company Mr. Valentin Dimitrov explained that the plant works at a loss and thus will be accumulated even higher debts. As a result of the illegal import the sales during November were reduced five times. The work of the plant will be stopped until 10 December when it will start the execution of an order for delivery of carbamide for Kosovo by a programme of EU.
Source: Dnevnik (27.11.2001)

The Board of Management of Chimco, Vratza has a new Chairman since yesterday. The former Chairman Mr. Valentin Dimitrov became a Chairman of the Association of the Fertilizers plants in Bulgaria. The new chairman of the Board of Management of Chimco is the former Deputy Chairman Mr. Martin Makariev. Yesterday was reached an agreement for the supply of minimal quantity of natural gas from Bulgargas in order to continue the work of the HPS in Chimco and thus to be avoided the freezing of the installations.
Source: Monitor (28.11.2001)

The debts of Chinco, Vratsa are about BGN 61 million. The biggest debt of Chimco is to Bulgargas - BGN 50 million. There are two main reasons for the bad financial state of the plant for fertilizers - the high price of the natural gas and the dumping prices of the Ukrainian producers of fertilizers, who import cheap carbamide through Rumania.
Source: Shans Express Vratza (29.11.2001)

The three working factories for fertilizers Chimko - Vratza, Neochim - Dimitrovgrad and Agropolichim - Devnya will be probably be forced to stop their activity because of the high prices of the natural gas. If this really happens 500 employees will lose their job and the consumption of natural gas will be halved.
Source: Dnevnik (10.12.2001)

The Ministry of Finance transferred the first amount of BGN 6.52 million from the additional subsidy for Plovid Municipality. A part of the sum - BGN 2.893 the Ministry has destined directly for paying the debt to Bulgargas. The rest of the money will used for the paying the social aids and to purchase medicaments and fuel. Within the end of the year the Municipality is expecting to receive the second transfer from the subsidy. It will be used for the debts to NEC and Water-supply company ViK.
Source: Sega (11.12.2001)

Aghropolichim JSC requested at least a partial liberalization of the deliveries of natural gas. The Executive Director of the company Mr. Vasil Alexandrov explained that they requested equality in the relations with Bulgargas. Agropolichim works in the conditions of severe competition on the free market of fertilizers but pays a monopoly price for the natural gas.
Source: BTA (27.12.2001)

The Association of the plants for fertilizers protest against the offered contract from Bulgargas for the delivery of raw material. If the offer is not changed within the end of the week one of the giants in this industry - Agropolichim will stop its work, announced the Executive Director of the company Mr. Vasil Alexandrov. He explained that the company is selling its products on the foreign market, among great competition and at the same time monopoly conditions are imposed on them from Bulgargas, NEC.
Source: Pari (03.01.2002)

Bulgargas will not reduce the price of the natural gas because of the high dollar rate for the time being. The price of the gas for a last time was decreased with 3.9 per cent as of October 1, 2001 and in this way were saved about BGN 1 million of the heating companies. The Deputy Director of Bulgargas Mr. Ilia Ivanov declared that they were ready to negotiate on the contracts' clauses with the fertilizer plants.
Source: Dnevnik (04.01.2002)

The Regional Court of Razgrad opened the case on the insolvency of the glass factory Diamant JSC - Razgrad with appointing two syndics - Mr. Boyan Minev and Mr. Gancho Todorov. The creditors' General Meeting is scheduled on February 4, 2002. The state monopoly Bulgargas JSC is the Diamant JSC largest creditor with a debt of BGN 10 million for the last three years. According to the evaluation report the factory’s total assets are below the due amount. Diamant JSC was forced to suspend production in August, 2001 after Bulgargas JSC stopped natural gas supplies due to outstanding payments.
Source: BTA (08.01.2002)

Bulgargas expects a net profit in amount of BGN 30 million as for 2001, announced the Chairman of the Board of the Directors of the gas-company Mr. Gati al Djeburi. During 2000 the company reported a loss in amount of BGN 95 million. This negative financial result was due to the old debts of the big consumers and of the gas company to the state budget and this problems were solved with the raise of the capital of the company during 2001.
Source: Dnevnik (09.01.2002)

The investors interest to the privatization in the energy sector will be indicative of how well the Bulgarian Government had done its job in providing favourable conditions for the restructuring, ABN Amro's Tim Egar thinks. He had presented his views on Bulgaria's energy sector in a meeting with energy minister Milko Kovachev and the Bulgargas JSC Chairman Gatti Jebouri, the Ministry press center announced.
Source: BTA (11.01.2002)

The biggest Bulgarian company for manufacture of glass is waiting the formal announcement of its insolvency. The activity of the company ceased during August last year and in the beginning of this year Razgrad District Court opened the procedure for declaring in insolvency of the company. The temporary syndics of the company will give their report at the General Meeting of the creditors. The debts of the company to Bulgargas is more than BGN 10 million and it is bigger than the amount of the asses of Diamant JSC.
Source: Banker (14.01.2002)

By this moment no contract for deliveries of natural gas during 2002 was concluded between Bulgargas and Agropolichim. In the end of last year the Executive Director of the Factory for fertilizers Mr. Vasil Alexandrov announced that he did not agree with the offered contract because both sides of the contract does not have equal obligations and rights.Agropolichim is discussing the programme for optimization of the expenditures because of the unfavourable market conditions. The low amount of the sales and the high prices of the natural gas brought losses in amount of BGN 2 million for the first 9 months of the year.
Source: Pari (21.01.2002)

The factory for fertilizers Chimko - Vratza restored its manufacture because of the high demand of carbamide on the domestic market, was reported from the factory. During November last year the work of the factory was stopped because of the accumulated to Bulgargas. Chimko lost most of its markets because of the import of cheaper carbamide.
Source: Dnevnik (24.01.2002)

60 are the companies that at the moment do not have the right to increase their funds for salary. Among them are BDZ SP JSC, NK Zhelezoputna infrastuktura, Bulgargas, NPS Kozlodui, WMZ-Sopot, Varna Shipyard and others.
Source: Pari (25.01.2002)

Bulgarian Clients have placed an order for 10 000 tons of carbamide with Chimco-Vratza, announced the Prosecutor of the plant Mr. Andrei Semerdjiev. The work at full capacity of the plant starts on Monday. On 23 January Chimco and Bulgargas reached an agreement for the deliveries of gas. The management of the company decided that the factory will work only on preliminary orders of the clients.
Source: Dnevnik (29.01.2002)

The fertilizer plant Agropolichim will attack the national gas company before the Competition Protection Commission, was reported from the chemical giant. If the problem is not solved soon, the fertilizer plant in Devnia will start working at economic regime, was added from Agropolichim.
Source: Black sea (29.01.2002)

As of February 1, 2002 Agropolichim JSC will equal the price of the ammonia nitrate with the price of the natural gas at the moment in Bulgaria. Now the prices are lower with BGN 10. In the end of the last year Agropolichim required from Bulgargas to be concluded a new contract for delivery of natural gas at the conditions of equal rights.
Source: BTA (31.01.2002)

Due to the high price of the natural gas Agropolichim will rise the price of the ammonium nitrate, was reported from the factory. Since 1 February the price of a ton of nitrate will be BGN 266 - with BGN 10 more then the previous price. The raise is not more than 3 per cent and it does not cover the price difference which the factory pays to Bulgargas and the price of the products. The actualization of the prices will help Agropolichim to reduce the amount of its losses.
Source: Standart (04.02.2002)

The temporary syndics of Diamant JSC Mr. Boyan Minchev and Mr. Gorcho Todorov will occupy this position continually, decided the General Meeting of the creditors. Eight legal entities and former employees of the factory for glass attended at the meeting. During the next 45 days they have to announce the amount of the claims that the factory owes to them.
Source: BTA (05.02.2002)

Sodi-Devnya is among the creditors of Diamant-Razgrad. At the next session the court will decide whether the company will be announced in insolvency or it will work on a reconstruction programme.
Source: Standart (05.02.2002)

Deliveries of natural gas in amount of 312 million cub.m. were negotiated at the meeting of the Prime Minister and Minister of Economy Mr. Nikolay Vasilev and the Chairman of the Board of Management of OAO Gazprom Mr. Alexey Miler. The deliveries are in accordance to the Yamburg agreement for the payment of the debts of Ukraine. In the end of January were concluded the contracts between Bulgargas SPLtd, NAK Naftogaz Ukraine and ZAO Gaztranzit, Kiev, which will provide the transport of the natural gas.
Source: BTA (06.02.2002)

The Minister of Energetic Mr. Milko Kovachev announced that the monopoly of the NEC will be over up to 2007. This means that the producers of energy will be able to concluded contracts for direct export with foreign companies. At the moment NEC is the only purchaser and exporter of electricity in the country. During 2001 Bulgaria has covered 48-50 per cent of the deficit of electricity in the region.
Source: 24 chasa (07.02.2002)

Glavbolgarstroy is selected for one of the sub-contractors of the project of the Swedish company IKEA for construction of trade objects in Russia together with the German company Hochfeit. Bulgarian company will build only one store in Moscow, announced the President of Glavbolgarstroy Mr. Simeon Peshov. Recently IKEA reported that the company also would start a manufacture in Russia and the first plant will be near Sankt Peterbourg. The plant will cost USD 15 million and in which will work 250 workers.
Source: Dnevnik (13.02.2002)

The private company Pio commerce Ltd. is engaged to pay off the current debts of Chimko to NEC SP JSC, became clear from the signed on February 7 agreement between NEC and the plant. The debts will be paid off from February 1 to December 31, 2002. The old debts, accumulated since July, 2000 in amount of BGN 30 million, will be paid by Chimko per BGN 300 000 monthly.
Source: Capital (18.02.2002)

The schedule for the deliveries of natural gas from Ukraine in accordance to the Yamburg agreement was finally defined after a meeting of the Minister of Energetics Mr. Mlko Kovachev with the Chairman of the Board of Directors of Gazprom Mr. Yurii Komarev. The deliveries of gas in accordance to this agreement will start in the beginning of March. The schedule for the payment of the Ukrainian debt was negotiated during the visit of the Deputy Prime Minister Mr. Nikolay Vasilev.
Source: Standart (19.02.2002)

Bulgargas JSC may cease the deliveries of natural gas for Toplofikatzia JSC-Lovech because it has accumulated debts in amount of BGN 150 000.
Source: Trud (19.02.2002)

Bulgargas has no debts to Topenergy and Gasprom for deliveries natural gas, announced the Minister of Energetics Mr. Milko Kovachev after his visit in Moscow. Gazprom once again refused to decrease the price of the natural gas. According to the Russian company there is no reason the price which was negotiated few years ago to be changed.
Source: Novinar (20.02.2002)

The debts of the industrial companies for electricity and gas are over BGN 500 million. The debts were accumulated for the period 1999unti now. Kremikovtzi, Chimko, Nova Plama, BDZ head the black list of the debtors of NEC and Bulgargas. Because of complicated procedures and pressure from different sides, the debts can not be gathered.
Source: Standart (27.02.2002)

Within a month Varna Appeal Court has to pronounce on the claim for declaration of a procedure in insolvency of another big debtor of Bulgargas - the glass plant Belopal - Beloslav. The claim was submitted by the State Claims Agency and Bulgargas in the end of 2000. The total amount of the debts of Belopal is BGN 10 104 050. The market price of the assets amounts to BGN 23 580 320.
Source: Standart (27.02.2002)

Five members of the Board of Directors of Diamant were suspended from the management of the company. The ban was imposed with a decision of Razgrad District Court. The ban was imposed by a request of the representatives of Bulgargas. The gas-supply company is one of the biggest creditors of the bankrupted glass factory The claims of Bulgargas are for more than BGN 10 million, which is more then the total amount of the assets of the bankrupted company.
Source: Standart (27.02.2002)

The Managers' team of Chimko-Vratza offers two alternatives for reduce of the expenses in the company. The one alternative includes a drop of the personnel with 50 per cent that means a decrease of 605 people. According to the second one the number of the personnel can be kept but if the Salary fund reduces with 40 per cent. One of these alternatives has to be chosen since the company will pay its current debts to Bulgargas and NEC.
Source: Pari (04.03.2002)

Both owners of Alkomet, Shumen - Industrial Holding Bulgaria and the Turkish company Faf metal reached an agreement. According to it the Turkish company will purchase the share of the holding in the joint company Alumetal. Alumeta holds 75 per cent of the shares of Alkometal, FAF metal holds another 15 per cent and the MEBO Alumina 98 owns 7.2 per cent of the capital. According to the agreement FAF metal and the MEBO remain the owners of the metallurgic factory.
Source: Dnevnik (05.03.2002)

The leader of SITUB Dr. Zhelyazko Hristov and the employees of Neochim JSC, Dimitrovgrad requested protection for the national manufacture of fertilizers . According to the trade unions and the employees from the branch the Council of Ministers has to impose a protection duty in amount of 40 per cent for the fertilizers. They insists for a differential prices of the natural gas for the fertilizers industry. At the moment Bulgargas is selling the natural gas for USD 135 per cubic meter In Ukraine and Rumania this price is USD 70
Source: Standart (19.03.2002)

Paper Factory SP JSC is the new owner of the assets of the paper factory Celhart based in the town of Stamboliiski. A company, especially created for this purpose, was the only candidate for the assets of the indebted company and bought them at the previously announced initial price of USD 28.944 million. The buyer is a newly-established company, which is 100 per cent ownership of the investment mediator Elana.
Source: Dnevnik (25.03.2002)

Bulstrad IRC has a new company sign, was reported from the company. The logo is in green and orange. The green colour is a symbol of the free market strategy and the orange shows the belonging of the company to the structures TBIH Group. The market share of Bulstrad is 21.78 per cent. The company is an owner of the London-based brokerage house EIRB. Among the biggest clients of the insurance company are Bulbank, State Saving Bank, Bulgargas, Balkan Airline, Hemus Air.
Source: Banker (25.03.2002)

The companies which use more than 100 million kilowatt-hours electricity or more than 80 million cubic meters of natural gas annually will be able the conclude direct contracts with independent producers of electricity or natural gas, announced the Chairman of the State Energy Regulation Commission Mr. Konstantin Shushulov. The companies which has debts to Bulgargas or NEC will not use the privilege to purchase cheaper electricity or natural gas from Petreko, Oil and Gas Exploration and Production - Pleven. Prof. Shushulov explained that the lower prices do not consider the import of natural gas.
Source: Standart (29.03.2002)

The glass company in Beloslav Belopal was on the verge to be declared in insolvency for a second time when Varna Appeal Court confirmed the decision of the district magistrates as of April 12, 2001 for rejection of the claim of Bulgargas for bankruptcy of the company. The debts of Belopal to the gas company exceed BGN 13 million. The dispute will continue in Supreme Cassation Court in Sofia.
Source: Pari (29.03.2002)

The gas company Bulgargas will reduce its investments from BGN 96 million over the last year to BGN 22 million over this year, announced the Executive Director of the company Mr. Kiril Gegov. During 2001 the gas monopolist built the last 46-km section of the transit gas pipe to Greece and Macedonia, enlarged the stations Kardam at Bulgarian-Romanian frontier and Stranja at Bulgarian-Turkish frontier. The net profit of Bulgargas for 2001 is BGN 24.3 million and its incomes increased with 5 per cent.
Source: Dnevnik (03.04.2002)

The accounting profit of Bulgargas for the last year is about BGN 29 000, was reported from the company. The main problem of Bulgargas are the unpaid debts to the thermal-supply companies and some of the big industrial companies that amount to BGN 260 million.
Source: National radio (03.04.2002)

The management of Chimko reached an agreement with Bulgargas for rescheduling of the payment of its debts to the gas company for 10 years, announced the Chairman of the Managing Board of fertilizers factory Mr. Martin Makariev. Since 1999 Chimko has paid to Bulgargas BGN 22 million and it still owes to the gas company BGN 59 million. The State will support Bulgargas by imposing lower prices of the natural gas.
Source: Standart (16.04.2002)

The price of electricity will rise by 7.9 per cent according to the optimistic forecast and by 11.2 per cent according to the pessimistic if Bulgaria decommissions unit 3 and 4 of Kozloduy Nuclear Power Plant in 2006, as required by the European Union /EU/. This shows a study of the Agency for Economic Analyses and Forecasting. The analysis was prepared with the participation of specialists from the National Electric Company JSC, Bulgargas JSC and the heating companies. If the two reactors are closed in 2008-10, as envisaged in the memorandum between Bulgaria and the EU agreed by the previous Government, the price of electricity will rise by 6.7 per cent or by 10.9 per cent. If however Bulgaria succeeds to stand its position to close the two units in 2010-12, electricity price will increased by 4.1 per cent or by 9.3 per cent, said the NEC’s representative Mr. Stefan Kanchovski.
Source: BTA (17.04.2002)

USD 29 million are invested in the technical equipment of Zlatna Panega. This sum is more than the obligations from the privatization deal, announced the Manager for Bulgaria Mr. Mihail Polendakov. The owner Heidelberger Zement Group JSC is the biggest investor in Eastern Europe in the area of building materials. According to the new three-year programme the amount of the investment of the German company in Zlatna Panega will be USD 40-50 million. The present investments are used mainly for increasing of the energetic efficiency and limitation of the ecological damages.
Source: Pari (19.04.2002)

In the beginning of May Agropolichim will start the so called cleaning of the historical pollution, was reported from the company. This is a part of the privatization contract and is an obligation of the State. The finances in amount of BGN 16 million are provided on the PHARE programme and will be used for the cleaning of the area of the plant from old buildings and equipment. The auction for the execution of the cleaning was won by Rei holding
Source: Pari (22.04.2002)

Bulgargas will pay by the end of the year the debts of BGN 22 million instead by June. This envisages an amendment in the Tax-procedure code, used by the Chairman of the budget commission Mr. Ivan Iskrov. In 1999 the Parliament accepted an act for arrangement of debts of the company in amount of BGN 650 million and the capital was increased with BGN 370 million and the rest of the debt has to be paid by June, 2002.
Source: Dnevnik (23.04.2002)

The Executive Director of Chimko JSC Mr. Andrei Semerjiev announced that the plant was negotiating with several banks for granting a credit. The funds are necessary for advanced payment to Bulgargas of the natural gas with which Chimko will restore its manufacture. With a part of the loan the company also intends to pay a share of its present debts to the gas company.
Source: Standart (25.04.2002)

À working group will be established for research of the opportunities for transit of natural gas from Turkey through Bulgaria till the middle of the current year. The working group will include representatives of Bulgarian monopoly Bulgargas and Turkish national gas company BOTASH. This was reported by the Minister of Energy and Energy Resources Mr. Milko Kovachev after his three-day visit in Turkey. Mr. Kovachev also confirmed that during the current month it will be completed the construction of the second 400 kW power line between Bulgaria and Turkey. The first such electricity line was built in 1975. The Executive Director of Bulgargas JSC Mr. Kiril Gegov and the Executive Director of NEC Mr. Vasil Antonov participated in Bulgarian delegation.
Source: BTA (08.05.2002)

A commission will coordinate the relations of Kremikovtzi with the state-owned companies - creditors of the plant - National Social Security Institute, tax and custom departments, NEC, Bulgargas and Lom and Burgas ports. The Deputy Minister of Economy Mr. Nikola Yankov will be the Chairman of the commission.
Source: Standart (09.05.2002)

The General Meeting of Rahovetzgas decided to increase the capital from BGN 500 000 to BGN 1 million. The major shareholder in the company is Overgas Inc. that holds 51 per cent of the capital. Veliko Turnovo, Gorna Oriahovitza and Liaskovetz Municipalities hold respectively 7, 5 and 3 per cent of the shares, other 2 per cent are property of private shareholders. Rahovetzgas JSC has a contract for concession for supply with gas of the three municipalities.
Source: Pari (10.05.2002)

The Government established a Commission for coordination of the relations of Kremikovtzi with the State creditors. The commission will organize the negotiations for the payment of the debts of the company. Among the biggest creditors of Kremikovtzi JSC are National Social Security Institute, Chief Tax Administration, Bulgargas, NEC and Bulgarian State Railways..
Source: Pari (17.05.2002)

National Social Security Institute prepared and distributed own countdown of the employers. It includes the names of 50 companies, in which the average salary for the last year exceeds BGN 700. The accurate state-owned companies are 8. These are Bulgargas, NPS Kozlodui, Bulgartabac holding, Blagoevgrad-BT, Kintex, Troyanovo sever groove, RVD and Elektrorazpredelenie-Plpvdiv.
Source: Banker (18.05.2002)

Representatives of the Ministry of Finance and the Ministry of Energetics will be included in the management of Toplofikatzia-Sofia after the reforms in the structure of the management are finalized, announced the Mayor Mr. Sofianski. The reforms are one of the terms for the company to receive a State guarantee for its credit in amount of EUR 30 million from the European Bank for Reconstruction and Development. The money from the loan will be returned in a term of ten years.
Source: Dnevnik (22.05.2002)

In the next ten years gas utilities will be installed to a total of 1,800,000 households. This is one of the main parameters of the National Programme for Installation of Gas Utilities in Bulgaria, which is being drafted by the Ministry of Energy and Energy Resources and the Ministry of Regional Development and Public Works. This was announced by the CEO of Overgas Inc. Mr. Sasho Donchev in Rousse. The document is based on the concept for Bulgaria's new energy strategy. In order for natural gas to reach all the 262 municipalities, the state monopoly Bulgargas JSC will have to invest a total of USD 420 million, or more than USD 41 million a year in the highway gas pipeline. According to Mr. Sasho Donchev, Bulgargas JSC develops well and has financial capacity to invest these amounts.
Source: Pari (27.05.2002)

Creditors closed the instrument work-shop of Alkomet yesterday. Representatives of Raiffeisen-Bulgaria and trade bank Bulgaria invest entered the plant. The plant owes to Raiffeisen a credot on which are pleged as a compensation 400 t alluminum scrap and machines from the closed work-shop. Bulgaria invest sent to the owners of the plant a notarialinvitation to pay a debt of BGN 180 000 by 7 days. Alkoment has not worked since May 17.
Source: Standart (07.06.2002)

Topenergy will be closed after the General Meeting of Gazprom on June 24, 2002. The subsidiary company of the Russian gas monopolist in Bulgaria initiated so many scandals that it became inconvenient for its owners. On January 8, 1996 were accepted new partners and the share participation was distributed as it follows; RAO Gazprom kept its quota of 50 per cent, Bulgargas reduced its share to 25.1 per cent. The new shareholders hold: Overgaz Inc. - 8.25 per cent, Multigroup- Bulgaria holding - 8.25 per cent, First Private Ban - 3.2 per cent, Bulbank - 3.2 per cent and Chimimport - 2 per cent.
Source: Banker (10.06.2002)

860 workers from Alkomet JSC-Shumen blocked for 1 hour and a half the main road to the highway to Varna. The workers want their job and their salaries or they will block everything in the town, including railway station. Alkomet stopped working on May 17 because of non-paid accounts to Bulgargas and NEC. The total debt amounts to BGN 708 000.The workers did not receive their salaries for January and April.
Source: Standart (11.06.2002)

Rothschild Conseil International Bank is interested in the privatization of energetic objects in Bulgaria, especially in the privatization of Bulgargaz, announced the Deputy General Director of the bank Mr. Francoise Lagre at a meeting with the Management of PA. The Director of the PA Mr. Apostol Apostolov invited the bank as consultant in the privatization of Navigation Maritime Bulgare, Bulgarian River Navigation and the big monopolies in energetics.
Source: Standart (18.06.2002)

The Ministry of Economy will start an investigation of the growth in the import of carbamide in Bulgaria. The reason for the investigation is the claim of the main producer of the fertilizer - Chimco -Vratza. Representatives of the factory claim that during 2000 and 2001 in Bulgaria was registered growth in the import of carbamide with 4 000 tons and 18 000 tons. The price of the imported product is lower than the production prices of Chimco. A ton of carbamide from the Vratza-based factory costs USD 110 because of the high prices of the natural gas. The international prices of the carbamide are USD 65-85 per ton.
Source: Dnevnik (19.06.2002)

The Turkish company FAF Metal has reached an agreement for the purchase of the stake in amount of 37 per cent of the capital of Alkomet JSC, which Industrial Holding Bulgaria JSC recently sold to the off-shore company Oracle Management, announced the Chairman of the Board of Directors of the Shumen-based factory for processing of aluminum Mr. Fikret Indce, who is a partner in FAF Metal. FAF Metal and the off-shore company Oracle Management hold 50 per cent of the capital of Alumetal JSC, which owns 74 per cent of the capital of Alkomet.
Source: Pari (20.06.2002)

Shumen-based Alkomet JSC resumed production after staying idle for one month. The company was cut from electricity and gas supplies due to unpaid debts to National Electric Company JSC and Bulgargas. On Wednesday the staff will receive the remainder of their salaries for the last two months. By the end of June Turkey's FAF Metal is expected to become owner of 91 per cent of the biggest aluminum works in the Balkans. This will happen after the Turkish company pays the shares currently held by offshore Orakel Management, which acquired them in late May from Industrial Holding Bulgaria JSC - Sofia, FAF Metal's former partner. On July 2 the Shumen Regional Court will hear the claim filed by Raiffeisenbank /Bulgaria/ JSC - Sofia for ruling Alkomet JSC bankrupt. According to Alkomet's Board of Directors Chairman Mr. Sikret Ince, the USD 430,000 debt to Raiffeisenbank will be paid on time and the company will avoid bankruptcy.
Source: Pari (24.06.2002)

"The Dutch brewery Carlsberg contracted an agreement with the owner of Shumensko Pivo for the acquisition of major stake of the Bulgarian Brewery" , was announced by two independent sources. According to the same information, the former major owner, the Turkish company Fin Metal, is not completely withdrawing from the factory. It will remain minor shareholder. The regional and central office did not comment the deal, but the whole deal is expected to be finished and officially announced within two weeks.
Source: Capital (24.06.2002)

Ràiffeiçenbank sold its receipt from Alkomet in the amount of USD 430 000, because of which on June 18 it demanded that Shumen District Court should announce the aluminum factory of the trade bank Bulgaria Invest insolvent. Bulgaria Invest filed a request in court on Thursday, with which it asks to terminate the production in insolvency of Alkomet - was announced from the press center of Shumen District Court. Mr. Hristo Dachev, manager of MEBO Alumina 98 - shareholder in the aluminum factory, refused to comment the cession. He, however, announced, that the situation of Alkomet has changed radically. This happened after the big shareholder in the company - the Turkish holding FAF-metal, managed to contract a deal with Lichtenstein's Oracle Management for the purchase of 50 per cent from the shares of Alumetal. Mr. Dachev refused to give information about the price of the deal, but according to a source from the factory, it is about EUR 2.5 million.Now FAF already owns 90 per cent of the combine's shares. After this deal, the combine can actually start working. Until the current moment, the management was performed by FAF and Industrial Holding "Bulgaria", which sold its shares to Oracle Management in the end of May and due to contradictions about the price of the deal, which was concluded yesterday, Holding Bulgaria blocked the activity of Alcomet," added Mr. Dachev. FAF metal, which is registered in Turkey, owns 15 per cent of the combine's shares independently. Another 75 per cent are owned by Alumetal - a company, in which FAF and the offshore zone registered in Lichtenstein Oracle Management were co-owners. The MEBO Alumin 98 holds 7.2 per cent of the combine's shares. The remaining part are ownership of small shareholders. After a one-month stay, the aluminum combine started working in the beginning of the year. All the 860 workers came back to work and are currently executing orders for Germany. They were paid their salaries for March and April. The electricity and gas are running after agreements for extended payment of the debts to Bulgargas and NEC were signed . For the first time this year, Alcomet terminated its activity in the middle of February. Back then, NEC stopped the enterprise's electricity because of unpaid liabilities in the amount of BGN 845 000. Again then it was revealed, that the factory owes considerable sums to Bulgargas. When in 1998 the Shoumen-based combine was announced for privatization, the Panama company Master Business Corporated and the consortium Alumetal expressed interest in it. Master Business Corporated was established by Fiat and Ferrari especially for this deal.
Source: Dnevnik (01.07.2002)

Chimco-Vratza is negotiating with Bulgargas for an agreement for rescheduling of the debts of the plant to the gas monopoly, announced the Chairman of the Managing Board of the Vratza-based Mr. Martin Makariev without giving the exact the sum of the debts of Chimco to Bulgargas.During the last year the Minister of Energy Mr. Milko Kovachev announced that the fertilizers factory has debts in amount of BGN 100 million to the state companies and the National Social Security Institute. The company concluded a 10-year agreement with NEC for rescheduling of is payment. Bulgargas will reduce the price of the natural gas with BGN 0.08 per 1000 cub.m.
Source: Pari (02.07.2002)

Varna Court of Appeal terminated the lawsuit for the declaration in insolvency of the Razgrad-based company Diamant. Decision 161 from June 26 2002 terminated the procedure against the biggest glass factory in Bulgaria, which started in January by decision of Razgrad District Court. The company has extremely large debts and has not stopped attending the payments to its creditors, was decided by the judges, headed by Ms. Severina Ilieva.
Source: Dnevnik (03.07.2002)

The Members of the Parliament and the Initiative Committee of the former employees of Diamant, Razgrad reached an agreement for an urgent review of the privatization deal for the factory. The investigation will be executed by the Agency for Post-privatization control. After meetings with the biggest creditors of the company- Bulgargas and National Social Security Institute will found the best way to be protected the interests of the State and the company continue its work .
Source: Standart (04.07.2002)

The German energy giant E.ON Energy, based in Dusseldorf is interested in investments in the Sofia-based electric-distribution company. According to a source from the Sofia-based company, the German company offers to establish a joint company, in which it should be a major owner, and the Bulgarian party should enter with non-monetary contribution. E.ON Energy is the second largest electric company after RWE in Germany and has 25 million clients.
Source: Dnevnik (08.07.2002)

State Claims Agency will sell off assets of Kremikovtzi. Among them are flats and buildings on which are imposed compensation measures. The Deputy Minister of Economy Mr. Nikola Yankov announced that the owners of the plant and state-owned companies-creditors dealt for this. With the funds will be covered the old debts to the creditors.
Source: Standart (15.07.2002)

Bulgargas will reduce the price of the natural gas for the big consumers with 26.5 per cent - to BGN 180 for 1000 cub.m. as from the next year, announced the Minister of Energetics Mr. Milko Kovachev. The transit tax for the transporting of the natural gas, paid to Gazprom remains in the company. The reducing of the price have to be approved by the Parliament with the Budget Law during the autumn.
Source: Dnevnik (22.07.2002)

Vratza-based plant Chimko concluded a deal with the Italian company Indagro for delivery of 6 000 t carbamide. The deadline for execution of the order is the end of this month. There was signed a memorandum between the management team of Chimko and the management of Bulgargas for rescheduling of the debts of the plant for gas. At a meeting of the Board of Directors of Bulgargas will be reviewed the document and will be discussed and accepted the concrete parametres of the future plan for payment of the plant's debts. At the moment Chimko works with 12 per cent of its capacity.
Source: Shans Express Vratza (23.07.2002)

The Prosecutor's Office brought a charge against the former director of Bulgargas Mr. Vasil Philipov. According to the representatives of the law, when he was on this position, he contracted unremunerative deals as a result of which the state and the company suffered serious losses. Mr. Philipov contracted deals with the American company Hardland Investment. These deals were in breach of the law. He caused Bulgargas damages in the amount of BGN 2 455 744. Customs duties in the amount of BGN 1 504 380 were not remitted to the state. The Americans profited USD 2 374 149 from this. The deals were realized in 1996 with a total of 164 clients in Bulgaria and were for delivery of natural gas.
Source: Maritsa (25.07.2002)

The auctions for the election of investors for the gas-supplying systems of the eighth regions of the country will be conducted in the end of September, announced the Deputy Chairman of the of the Energetic Regulation Commission Mr. Ignat Tomanov. The eight gas-supply regions are Dobrudja - centre Varna, Miziya - centre Pleven, Dunav - centre Russe, Serdika - centre Sofia, Primorski - centre Bourgas, Zapad - centre Vraza, Trakya - centre Plovdiv, Yugozapaden - centre Dupnitza. The general principles for the conduction of the auctions in accordance to the European standards is the establishment of consortiums of three companies, financed by an organization of the World Bank. The main criterion for the election of the investor will be the balance between his interests and the interest of the consumers.
Source: BTA (25.07.2002)

The debts of the central heating utility companies to Bulgargas SPJSC by this moment are in amount of BGN 151 million. About BGN 120 from them is the debts of Toplofikacia Sofia, announced the Executive Director of Bulgargas Mr. Kiril Gegov after the meeting f the Parliament Energetics Commission. The chemical companies and the central heating utility companies are the biggest debtors of Bulgargas, but they also are the greatest consumers of natural gas. According to the representative Mr. Hristo Kazandjiev of the Ministry of Energy and Energetic resource if the differentiated prices for the natural gas for them are imposed the effect will be minimal because the work of the biggest companies is not stabile.
Source: BTA (25.07.2002)

Pernik-based glass plant Crystal looks for opportunities for export to Serbia since there are difficulties with sale of its production at the domestic market, declared the Executive Director of the company Mr. Dimitar Dimitrov. The company is the only one in Bulgaria that manufactures hardened glass. Mr. Dimitrov said that there were made attempts for export to the neighbouring countries but the demand is low because the production of the plant is not familiar at the foreign markets.
Source: Dnevnik (30.07.2002)

The Parliament gave authorization to the Government to lead negotiations with EBRD for the signing of a guarantee agreement for EUR 120 million for rehabilitation of Toplofikatsia Sofia. The deputies from Coalition for Bulgaria voted "against", because it is written in the conditions for financing of the project, that a part of the funds (EUR 30 million) are granted for the quitting of the operation of the blocks of NPP Kozloduy. The Minister of Energetics Mr. Milko Kovachev was positive that this would not slow down the negotiations with EU in the chapter of Energetics.
Source: Pari (02.08.2002)

The Deputy Minister of Energetics Mr. Ilko Jotzev is the new member of the Board of Directors of Bulgargas SPJSC. He was appointed by the Minister of Energetics Mr. Milko Kovachev. Mr. Jotzev will replace the Deputy Minister of Finances Mr. Krasimir Katev in the Board of Directors of the gas-company. The former Director of the Energetic Efficiency Agency Mr. Drumi Drumev will take the position of a Deputy Minister of Energetics.
Source: Standart (07.08.2002)

The agreement for the rescheduling of the debts of Toplofikacia - Sofia to Bulgargas will be concluded very soon, announced Mr.George Rogachev. The debts of the Sofia-based company have been reduced with about BGN 114 million. The unpaid bills for central heat-supply and hot water of the public subscribers and companies are about BGN 75 million. The hot water-supply of several public buildings with large debts have been already ceased.
Source: Standart (15.08.2002)

Bulgargas plans in the nearest future to conduct auctions for the purchase of steel pipes with a diameter of 710-1220 mm, stations for the highway gas-mains and spare parts for them, measuring equipment for the gas-distribution stations, equipment for purification of the internal and external surface of the gas-mains.
Source: Pari (21.08.2002)

The incomes from sales of Chimco-Vratza for the fist six months of the year were only BGN 11.5 million, which is nearly six times less as compared to the same period of 2001. In the end of last week its shares reached their lowest price by this moment - BGN 0.15 per share. The result of the activity of the company are not surprising as for the first half of the year the company has worked only for a month. Chimco is in a crisis for a third consecutive year, as during 2001 it reported the record loss in amount of BGN 21.7 million.
Source: Pari (22.08.2002)

The budget can grant BGN 24 million to the thermal-supplying companies in the State in order to pay their debts to Bulgargas. This is one of the alternatives that are discussed by the Ministry of Energetics and Ministry of Finance for payment of BGN 148 million to the gas company. This alternative can be realized but if there is a surplus in the income part of the budget, according to experts. In 2001 the budget granted funds to the companies because of the same problem. The subsidy for the companies for this year is BGN 50 million.
Source: Dnevnik (23.08.2002)

The Ministry of Economy has discussed the offer of American Steel Industries /ASI/, a US metallurgical company, for the purchase of Kremikovtsi steelworks. This was announced by a senior officer at the Ministry of Economy. The meeting, which was held in July, was attended by representatives of the Ministry of Finance and the Privatisation Agency. The Philadelphia-based company offers to buy 96.29 per cent of the metallurgical works and suggests and investment programme amounting to USD 400 million for an eight-year period. The current owner of Kremikovtsi - Finmetals Holding JSC - holds 71 per cent of the enterprise. ASI commits to settle Kremikovtsi's debts to National Social Security Institute, amounting to BGN 77.41 million as of July 12, 2002, to the Treasury, amounting to BGN 8.26 million as of March 1, 2002, and to the Customs Agency, amounting to BGN 27.38 million as of June 3, 2002. The debts will be repaid for 15 years with a five-year grace period and a 10-year rescheduled payment scheme. The US company plans to increase output from 1.5 to 3.8 million tonnes in 2005 and reach 5 million tonnes of steel products by 2015.
Source: Pari (03.09.2002)

PA has not announced an auction for the privatization of the Lovech-based company Toplofikatzia, was reported from the company. During June the German company RVE - Entzorgung /RWE AG/ announced in a letter to the Ministry of Energetics and Energetic Resources its readiness to participate in the privatization of Toplofikatzia. In the letter was said that the company will undertake a significant financial obligations for investments in amount of BGN 1.5 million for the rehabilitation of the capacities and for the purchase of new equipment. The District Governor Mr. Marian Balev with the support of Lovech Municipality and the Ministry of Energetics has sent a letter to PA for the acceleration of the procedure. At the moment are prepared the evaluation, the legal analysis and the memorandum, as the documentary-prepared by Beta consulting - Sofia, were not accepted by the commission of PA, explained the Executive Director of Toplofikatzia-Lovech Mrs. Margarita Kamenova.
Source: BTA (04.09.2002)

At the General Meeting of Chimco was reported a record loss in amount of BGN 21.7 million as of 2001. About BGN 15 million from that sum were from not sold production. According to the accountant report of the company the production of carbamide has declined with 40 per cent as compared to the previous year. The company has debts in amount of more than BGN 200 million as the biggest are to Bulgargas and NEC. According to the Chairman of the Managing Board of the company Mr. Martin Makariev the price of the natural gas is continuing to be the main reason why Chimco is not working and to produce losses.
Source: Pari (09.09.2002)

The Management of Bulgargas will negotiate with eight banks for different ways for fixing the rate USD/EUR in the payments of the deliveries of natural gas of the company, announced the Deputy Minister of Energetics Mr. Ilko Jotcev. This scheme will allow the payments to be executed on preliminary negotiated currency rate. The purpose of the deal is to be avoided the unfavourable influence of the movement of the rate of USD on the price of the natural gas.
Source: Dnevnik (11.09.2002)

The workers from workshop 202 for packing glass of Kitka JSC - Novi Pazar demanded that the Regional Governor Dr. Yovcho Dobrev should cancel the tender for the sale of the workshop's land and building, which is due to be held on September 16 2002. They reminded, that the workshop is managed by Opakovachno Stuklo SP Ltd. - Varna since 2000, but because of defects in one of the devices the workshop stopped working shortly after that.
Source: Shumenska zarya (18.09.2002)

The Municipal Board of Dobrich did not accept the offering of the municipality to buy 80 per cent of Chernomorska technologichna kompania JSC - Varna in the joint-venture Gasengineering Ltd. that had to construct the installations and the transport infrastructure for gas-supply of the town. The municipal advisors motivated their refusal with the unclear price that Chernomorska technologichna kompania JSC - Varna wants for its share. They are afraid that Gasengineering may have hidden debts with which to burden the municipality.
Source: Pari (18.09.2002)

Kremikovtzi's debts to the state exceed BGN 900 million, or USD 450 million, and this makes the company different from others. This is the opinion of Mr. Lilyan Vachkov, former Executive Director of the company (1992-1996). That is why the Government cannot stay away from the enterprise, which is practically being destroyed. And this affects the whole branch. At the same time, the debts of Kremikovtzi to NII are in the amount of BGN 77.41 million, to NEC - BGN 60.09 million, to Bulgargas - BGN 21.81 million, to the ports - BGN 2.79 million, to Bulgarian State Railways (BDZ) - BGN 10.54 million. Some time ago, Metal Bulletin released a publication, according to which Bulgaria has serious problems with EU because of Kremikovtzi. The reason for this is that it gives subsidies, finances a private company. And this is still a problem. First of all, the privatization contract is not executed, the investment program is not executed either. For the second time already the owners of the plant are going to draw BGN 5 million from the guarantee for non-execution of the investment program. There is no repair program. The debts of Kremikovtzi at the time it was bought were in the amount of BGN 600 million, and now they are BGN 900 million.
Source: Pari (18.09.2002)

Vratza-based fertilizers' plant Chimko will stop working if by the end of the year the Dovernment does not reduce the price of the natural gas. At the moment the price of 1000 cubic metres is BGN 280 and the last reduce of the prices is with BGN 6 as of the end of September. Meanwhile Chimko can be declared in insolvency at any time since its debts to NEC and Bulgargas have not been still paid. The major owner of the plant - the Cyprus company A.V.S.T. Trading Limited is ready to declare the decapitalized company in insolvency and to close the plant. This year Chimko worked only 45 days.
Source: Dnevnik (09.10.2002)

DELOITTE&TOUCHE Bulgaria is working in cooperation with the Ministry of Finance on the project of PHARE programme for isolation and reconstruction of state-owned companies which is the biggest project of EU of this kind. Among the biggest clients of the company in the State are UBB, Bulgargas, DZI, Glavbolgarstroy, Naftex, Rosexim, EIBank, Municipal bank, Solvay, BDZ, NEC.
Source: Pari (17.10.2002)

The first Bulgarian rating agency will make its credit ratings and will evaluate the risk of legal entities and different sorts of debts. The Agency was established on September 17 with the partnership of Bulgarian Export Insurance Company, was reported from the press-centre of the Ministry of Economy. It is expected that the main partners of the Agency will be big creditors such as NEC, Bulgargas, as well as Chief Tax Administration, State Receivables Agency and all trade banks in the country. The establishment of Bulgarian Rating Agency JSC is a part of the strategy for development of the capital markets and improvement of the business environment in Bulgaria.
Source: BTA (18.10.2002)

It is expected State Claims Agency to free the distraint on the assets of Kremikovtzi if are paid the old debts of the plant before the privatization, announced the Deputy Minister of Economy Mr. Nikola Yankov. The commission that coordinates the relations of Kremikovtzi with the state creditors has already submitted an offering in the Council of Ministers the debts of BGN 140 million before the privatization to be paid.
Source: Pari (24.10.2002)

Bulgargas SPJSC has invested BGN 20 million in the modernization of Compressor station - Strandja, was reported from the center of the company. Last week was the official opening of the compressor Station in Gorska Polyana village. The reconstruction and modernization of the equipment for raising of the safety of the transit system started during 2001. The election of the chief executor and designer of the project was made at open international auctions.
Source: BTA (28.10.2002)

State will require the insolvency of Vratza-based fertlizer plant Chimko. Today will be held a meeting between the management of the plant and representatives of the Ministry of Economy at which will be discussed the measure. There has to be made something for the solution of this problem since Chimko can't pay the debts to Bulgargas, said the Deputy Minister of Energetics Mr. Ilko Yotzev. He also said that are made last analyzes about the alternatives for paying the debts. Mr. Yotzev also specified that the two companies - Bulgargas and NEC may require the insolvency of the fertilizers' plant. The accounts for unpaid electricity are BGN 31 million and the debt to the gas monopolist is BGN 60 million.
Source: Dnevnik (28.10.2002)

Bulgargas raised the transit of Russian natural gas up to 9.9 billion cub.m. as for the ninth months of the year for Turkey, Greece and Macedonia, announced the Executive Director of the company Mr. Kiril Gegov. During the same period of 2001 have been transported 8.9 billion cub.m. According to the long-term agreement with Gazprom is planed by the end of 2007 the transit to grow to up to 18 billion cub.m. annually. This is maximum quantity which can be transferee through Bulgaria.
Source: Dnevnik (28.10.2002)

The protests of the workers from Vratza-based plant Chimko will be turned into civil disobidience. They insist on taking concrete measures for saving the plant and to get their salaries. There will be a meeting of the Board of Management in the afternoon but it is not expected to be declared a procedure of insolvency. If the Board of Management do not submit the claim for declaration of a procedure of insolvency in the Court, the workers will block the railroad to Sofia.
Source: Dnevnik (31.10.2002)

According to Mr. Valentin Zahariev, Executive Director of Kremikovtzi JSC by June the plant had accumulated losses in amount of BGN 13 million. Since then the financial result of the company is positive and it is expected that it will report a profit in amount of at least BGN 20 million in the end of the year. At the moment the main part of the debts of plant are to the Sate and the state companies. Kremikovtzi JSC has a debt in amount of about BGN 52 million to NEC, but it had concluded a contract for the sale of a sub-station at a value of BGN 6 million. NEC does not agree to buy the sub-station because the State Receivables Agency has not blocked the property of the company and the electricity company is not sure if it will not be takes after it pays the price on the contract. Besides there is a contact for the delivery of electricity-distribution equipment to NEC. Thus the real amount of the debts of Kremikovtzi to NEC will be reduced to about BGN 32 million. The company has a debt of about BGN 20 million to Bulgargas JSC and another BGN 37 million to the National Social Securities Institute. These are the main debts of the metallurgic plant in total amount of about BGN 90 million. Since the company has restored its activity it had received no money for tax credits and all of its incomes were used for the payment of old debts. According to Mr. Zahariev the so called hidden debts are in amount of BGN 280 million. About BGN 170 of them are interests and unpaid duties for the period 1991-1998. The management of the metallurgic plant demands these debts to be remitted. Meanwhile Bulgarian State Railways intends to raise the fees for the transportation of the production of Kremikovtzi with about 45 per cent. The railways company has broken the contract with Kremikovtzi on September 29.
Source: Capital (04.11.2002)

À principle settlement was reached between Bulgargas JSC and Rakhovets Gas-96 JSC of Gorna Oryakhovitsa on three projects concerning gas mains construction in Veliko Tarnovo, Gorna Oryakhovitsa and Lyaskovets. Under the agreement Rakhovets Gas JSC will build a high pressure arm from the major northern Russia-Bulgaria gas pipeline towards the three towns and two automated gas distribution stations. The project is assessed at BGN 40 million. Bulgargas JSC will buy the construction via beneficial natural gas prices for a 10 year time with an 18 month grace period. Rakhovets Gas-96 JSC is ready to start also the intra-urban mains construction connecting first the large industrial customers. The framework agreement is to be signed in a month's time. Natural gas consumption is expected to rise from 15 million cu.m in the first year to 95 million cu.m. in the third year to 112 million cu.m. in the tenth year. Construction works are to be launched in the first days of March, 2003. Some 200 jobs will be generated, the Veliko Tarnovo municipality said.
Source: Pari (05.11.2002)

Bulgargas will gain one third of the Sofia-based Toplofikatzia. This is the last offer the Ministry of Finances, in order to be cleared the debts of the company for fuel, which are in amount of BGN 140 million
Source: Standart (08.11.2002)

Overgas Inc. will be able to transfer gas when the monopoly of Bulrgargas over the transfer of gas is eliminated, announced the Executive Director of Overgas Mr. Sasho Donchev. 50 per cent of the capital of Overgas are property of the Russian company Gazprom. In the key terms of the new Energy Law is included the elimination of the monopoly over the gas transfer. According to the experts from the Ministry of Energetics in the new law will be written that every company has the right to deliver gas. If the monopoly is eliminated Overgas will be able to built a 24-kilometer gas pipeline, which will supply gas to Gorna Oryahovitza and Veliko Tarnovo.
Source: Dnevnik (11.11.2002)

The deal for the privatization of the company for manufacture of porcelaine Kitka JSC, Novi Pazar will be broken. The motif for the braking of the deal is the fact that the MEBO, owner of the company has executed only one of the terms of the privatization contract. The company has transferred the initial implement, announced the Minister of Economy Mr. Nikolay Vasilev. Kitka JSC was listed in the trade register of Shumen District Court during June 1994 as a joint stock company for manufacture and trade with colour glass, porcelain The capital of the company is BGN 410 283, distributed in 410 283 shares with face value of BGN 1. During the summer PA sold 25 per cent of the capital of Kitka JSC at an auction with open bid tenders. The purchaser was teh newly registered Kitka 1 MEBO. The auction price was USD 802 590 and the price per share reached USD 7.824.
Source: Dnevnik (12.11.2002)

Since its creation in 1996 Rahovetz gas 96 has expected to solve the technical problem with the construction of the 26-km section from the highway gas pipe near Polski Senovetz to gas-distributing stations near Veliko Turnovo and Gorna Oriahovitza, declared the Executive Director Mr. Dimitar Dimitrov. Now is expected by the end of the month to be signed the contract with Bulgargas that has a license for transport of natural gas with high pressure. According to the preliminary calculations are necessary USD 15 million.
Source: Borba - Veliko Tarnovo (15.11.2002)

Managers, experts, representatives of state institutions and trade-union discussed today the declaring in insolvency of Chimco JSC, Vratza and the reconstruction programme of the fertilizers factory. The major creditors of the company - Bulgargas and NEC have already prepared the documentary for the procedure for insolvency. Chimco owes to these companies debts in amount of BGN 100 million, announced the representative of the gas-company Mr. Dimitar Gogov. According to the experts' analysis, prepared by the former Executive Director of the fertilizers factory Mr. Kiril Petkov the company is decapitalized, it has enormous debts (BGN 135 600 000) and is not able to pay the interests over its debts and to use the needed for the manufacture finances.
Source: BTA (19.11.2002)

Bulgargas will be launched for privatization in 2004 when is expected to finish the restructure of the company, annoinced the Minister of Economy Mr. Nikolai Vassilev. The transit of natural gas through Bulgarian territory will be increased from 13 billion cubic metres to 18 billion cubic metres per year. At the moment Bulgargas transits Russian natural gas to Turkey, Greece and Macedonia. A month ago the Directors of the company dealt with the management of Gasprom the transit to Greece to be increased from 2 billion to 6 billion cubic per year. There is also an opportunity Bulgaria to transit fuel to Serbia, added Mr. Vassilev. He forecasts that our country can't expect many candidates that will take the transit of Bulgargas after the privatization.
Source: Monitor (27.11.2002)

The management of Chimco JSC, Vratza has sent a claim in National Electricity Company at value of BGN 123 million for the debts for rent of the equipment of the fertilizers factory, announced the Chairman of the Managing Board of the factory Mr. Nikolay Vuzev. The claim concerns the open area distributors, property of Chimco. According to Mr. Vuzev this is a step for protecting the property and the interests of the chemical factory
Source: Dnevnik (27.11.2002)

National Electric Company submitted a claim in Vratza District Court for declaration in insolvency of Chimko, was reported from the company. The claim is because of the debts of the plant to NEC in amount of BGN 33.4 million. By two or three days Bulgargas also will submit a claim for bankruptcy of the plant, also because of debts in amount of BGN 75 million. NEC rejected the the statement of Chimko for having debts to the plant for BGN 123 million for rent of equipments.
Source: Monitor (28.11.2002)

Bulgargas wanted the declaration of chimko in insolvency because of debts of BGN 69.6 million. In the end of November, this year NEC also initiated a claim against the plant for BGN 33.4 million.
Source: Trud (05.12.2002)

Vratza District Court stopped the insolvency procedure for Chimko JSC. The Court accepted that at this stage there are not receivables since there appeared complicated obligation relations between the sides. The case for declaration of Chimko in insolvency was initiated by request of NEC with a claim for BGN 33.4 million and of Bulgargas whose claim is for BGN 69.6 million.
Source: Pari (13.12.2002)

The cabinet announced its decision to establish a Consultative Council with the Ministry of Economy for monitoring the fiscal discipline and fiscal performance of the companies in which the state owns more than 50% of the capital. The council will be chaired by deputy prime minister and minister of economy Nikolay Vassilev and will include the ministers of finance, economy, regional development, agriculture and forestry.
Source: Pari (22.01.2003)

Vratza District Court confirmed the rulings of the Region Court about the debts of NEC to Chimco and about the issuing of compensation order for the blocking of a sum of BGN 89 million. The rulings of the District Court are final and are not subject to appeal.
Source: Pari (24.01.2003)

The liberalisation of the gas-market, desired by the biggest consumers, will remain a good intention as for now, despite the fact that the new Energetics Law, which had been prepared by the Parliament allows to the companies to import natural gas. It is planned that monopoly of Bulgargas over the transportation and deliveries of natural gas will be abolished under certain conditions.
Source: Dnevnik (29.01.2003)

The Russian gas company Gasprom may become a shareholder in Bulgarian companies from the chemical industry against a cheap natural gas if they want, declared the Chairman of Gasprom Mr. Alexei Miller. He also added that the Russian gas concern will take part in the privatization of Bulgarian companies that are big cosumers of natural gas.
Source: Dnevnik (06.02.2003)

Toplofikatzia-Sofia SP JSC will secure with its receipts from NEC SP JSC the state guarantee on the loan agreement with European Bank for Reconstruction and Development for repair of the heating transfer network. This is according to a contract for extraordinary gage between Bulgaria and Toplofikatzia-Sofia that the Government approved at its meeting. The Ministers of Finance and Energetics Mr. Milen Velchev and Mr. Milko Kovachev are authorized to sign the contract.
Source: Dnevnik (07.02.2003)

The preliminary data for the financial result of Bulgargas SPJSC as for 2002, showed a pre-tax profit in amount of BGN 124 382 thous. The net profit of the company is in amount of BGN 99 032 thous. The taxes paid by Bulgargas SPJSC during the period January 1 2002 - December 31 2002 were in amount of BGN 369 449 thous., as BGN 157 070 thous. from them were VAT and BGN 23 350 thous - profit tax. During 2002 the company has imported natural gas in amount of 2 958 million cubic metres.
Source: BTA (11.02.2003)

The companies with over 50 per cent state participation may raise the salaries of their employees during the year only if they had reported good financial results over the previous year, is planed in a project of the Council of Ministers for a Decree for the formation of the salaries in the companies with more than 50 per cent state or municipal participation. The Decree affects 50 companies among, which are NEC, Bulgarian State Railroads, Bulgargas, Balkancar holding, mining, and steel-producing companies.
Source: Pari (12.02.2003)

Bulgargas stopped the supply of natural gas for Terem-Turgovishte on February 5 because of not paid debt for January in amount of BGN 36 126. The deliveries were ceased after many warnings from Bulgargas. The supply of fuel was restored when Terem paid BGN 27 000 in advance for the deliveries in February. At the moment the receipts of Bulgargas from irregular debtors exceed BGN 150 million.
Source: Monitor (19.02.2003)

Glavbolgarstoy and Rosseximbank are ready to invest in the construction of houses in Russia, announced the President of Glavbolgarstroy Mr. Simeon Peshev at the presentation of the programme that Bulgaria-Russia forum organizes for the forthcoming visit of the Russian President Mr. Vladimir Putin.
Source: Dnevnik (28.02.2003)

The Russian Federation is ready to increase the transit of Russian natural gas via Bulgaria and to participate in the privatisation of Bulgaria's energy companies and the construction of the Belene nuclear power plant (NPP). This emerged during President Vladimir Putin's three-day visit to Bulgaria. The willingness of Russia's Gazprom to participate in the divestiture of Bulgargas was also confirmed. Russia is ready to increase the volume of gas transited to Macedonia, Greece and Turkey from 12 to 18 billion cu. m and take part in the expansion of the pipeline network and the installation of gas supply in Bulgaria, President Putin said. The issue about the intermediaries in gas deals is not our problem, this is a problem of the Bulgarian side, Vladimir Putin underscored. The fewer the intermediaries, the less the prices are increased, he said.
Source: Pari (04.03.2003)

In the beginning of April start the negotiations of Overgas and Topenergy with Bulgargas for mediation at the trade with Russian natural gas for Bulgaria. Russia wants to eliminate the two companies from the transit of fuel in the State, announced the Minister of Energetic and Energy Resources Mr. Milko Kovachev..
Source: Duma (13.03.2003)

Bulgargas initiated a full reconstruction and modernisation of the gas reservoir in the village of Chiren, announced the Director of the company Mr. Kiril Gegov. By the end of October in the reconstruction will be invested BGN 12 million. There has been no reconstruction in the object for the last 20 years. The main purpose of the reconstruction of the reservoir is that it will be turned in the most modern gas reservoir in Bulgaria.
Source: Duma (13.03.2003)

Chimco will not be declared in insolvency, announced the Chairman of the Managing Board of the company Mr. Nikolay Vuzev, after the Deputy Prime Minister and Minister of Economy Mr. Nikolay Vasilev requested a quick bankruptcy of the fertilisers factory. According to Mr. Vasilev if a company has reported losses at a value of BGN 68 million for the last four years there is no way that it could be saved. It is expected that the Supreme Administrative Court will make its decision on the claim of the main creditors of the company - NEC and Bulgargas.
Source: Pari (24.03.2003)

The prices of natural gas will grow from BGN 280.06 to BGN 287.19 VAT included for 1000 cubic meters as of April 1. This decision was taken by the State Energy Regulation Commission. The increase became necessary, after Gasprom increased the price of Russian natural gas with 20 per cent. According to the contract between Gasprom and Bulgargas, the prices may be changed every three months and depend on the prices of oil on international markets and USD rate.
Source: Dnevnik (28.03.2003)

Orbitel signed two contracts for IT services with Bulgargas - for provision, installation and configuration of software, necessary for the use of internet tranffic and for transfer of the ownership right on the techincal equipment for internet provision.
Source: ComputerWorld e-Daily (01.04.2003)

More than 400 workers from Chimco started termless civil strike. The reason is that the company’s management team has not paid the employees’ salaries due until March 31. The workers demanded that the state should intervene in the settling of Chimco’s problem and stop the draining of movable tangible assets.
Source: Pari (02.04.2003)

Bulgargas SPJSC reported an accountant profit in amount of BGN 23.2 million as for the first quarter of the year. The taxes paid by the company are in amount of 145.9 million, which is with 43.1 million more as compared to 2002. According to the preliminary data the consumption of natural gas during the first quarter of 2003 has grown to 1 084 million cub.m., which is a growth of 107.1 per cent as compared to the first quarter of 2002.
Source: Pari (11.04.2003)

The Minister of Energetics Mr. Milko Kovachev, the Minister of Regional Development and Public Works Mr. Valentin Tzerovski and the Chairman of the Parliament group for energetics Mr. Veselin Bliznakov opened at an official ceremony the renovated compressor stations Kardam-1 and Kardam-2 near the Bulgarian-Romanian boundary. The stations are at the entrance of the two routes for transfer of natural gas to Turkey, Macedonia, Serbia and highway gas-pipeline for Bulgaria.
Source: Dnevnik (14.04.2003)

The consumption of natural gas over the first three months of the year has grown with 7.1 per cent as compared to the same period of 2002. The consumption has reached 1.084 cub.m. was reported from Bulgargas. The accountant profit of the company has reached BGN 23.2 million. The company has paid BGN 149.5 million for taxes.
Source: Monitor (14.04.2003)

The Ministry of Energetics negotiates secretly from PA for sale of assets of the thermal companies in Pravetz and Vratza. The company in Pravetz had to be sold in the end of February through a public tender that failed because the two candidate-buyers – Energosnabdiavane and L M Impex SP Ltd. – Samokov. Then the experts declared that the deal failed because the initial tender price of BGN 1.5 million and the step for bidding of BGN 50 000 were high.
Source: Monitor (15.04.2003)

Austria did not sign an agreement with Greece and Turkey for construction of a gas pipe for transfer of Iran gas to Western Europe that will go round Bulgaria, announced the CEO of Bulgargas Mr. Kiril Gegov. In a letter from April 10 the President of OMV Mr. Ergas Otto Mujzelih assured that the company would not take part in Turkish-Greek project since there has already been signed an agreement for construction of a transit pipe through Turkey, Bulgaria, Romania and Austria.
Source: Monitor (15.04.2003)

European Bank for Reconstruction and Development will invest EUR 380 million in Bulgaria in 2003. More of the credits will be for energetic projects, announced the Director of the bank for Bulgaria Mr. John Shomeldoll. According to him the bank is ready to take part in the restructure of Bulgargas and in the project Maritza Iztok 1, if there is such one. According to the reports of the Ministry of Energetics over the next 3 years Bulgaria will need investments between EUR 2.5 billion and EUR 6 billion for the energetics sector as a whole.
Source: Duma (30.04.2003)

Topenergy dropped out its intermediary function in Bulgaria`s gas supply and will turn into a regional distribution center, which will control the transit of gas on the territory of Bulgaria, Romania, Macedonia and Turkey. Topenergy is fully owned by Gazprom and together with Overgas is an intermediary in natural gas supplies from Russia to Bulgaria. The company was founded in 1995 as a Bulgarian-Russian joint-venture, but in 1997 Gazprom bought the shares of the Bulgarian companies and banks, who owned part of the capital. After Topenergy becomes a distribution point, based in Bulgaria, the only intermediary left in the gas supplies for Bulgaria will be Overgas. It is expected the price of the blue fuel to slightly decrease. The agreement between Topebergy and Overgas, signed in 1997 expired at the end if April.
Source: Monitor (07.05.2003)

Pernik District Court decided on April 29, 2003 to declare in liquidation Stomaneni otlivki I izkovki SP Ltd.-Radomir – a subsidiary of Radomir JSC. It includes all main work-shops without mechanic-processing ones. The Chief Director of Radomir metali JSC Mr. Plamen Paskalev announced that the liquidation was required by the Board of Directors. Mr. Ludmil Alexandrov was appointed for a liquidator. Mr. Paskalev explained it was not a total liquidation or selling off but for restructure of the production. The subsidiary was created in February. At the moment Radomir metali produces from 500 to 800 tons production per month. According to the Directors of the company the State kills the producers by means of the monopolists NEC and Bulgargas.
Source: Pari (15.05.2003)

TPS-Sofia started a project for rehabilitation of the network at amount of EUR 114 million, announced the Executive Director of the company Mr. Valentine Dimitrov. From them EUR 30 million are a loan from the European Bank for Reconstruction and Development, EUR 26 million are a loan from the World bank, EUR 30 million are a grant from the International fund of NPS Kozlodui and EUR 25 are own funds. The gratis period is 5 years and the period for payment is 15 years. For this year the expected investments are EUR 18 million.
Source: Pari (28.05.2003)

Glass factory Belopal in Beloslav has accumulated debts to Bulgargas in amount of BGN 12 million. The company has also accumulated debts in amount of BGN 3 million to other companies. The court procedure for declaring the company in insolvency has continued for 39 weeks ago already. The case has passed through all court institutions already. Varna District Court refused to satisfy the claim of Bulgargaz and State Receivables Collection Agency for declaring of Belopal in insolvency.
Source: Pari (29.05.2003)

The Deputy Minister of Finance Mr. Krassimir Katev will be a Director of the Board of Directors of Bulgargas at the place of Mr. Gati al Jeburi. The Minister of Energetics Mr. Milko Kovachev prepared the order for his appointment as a member of the Board. At the moment Mr. Katev is also a member in the Board of Directors of Bulgarian Consolidation Company.
Source: Sega (12.06.2003)

The case for the bankruptcy of Chimko will be up before Vratza District Court on June 18. The case was initiated by claims of Bulgargas and NEC because of debts of the plant in amount of BGN 100 million. Former workers and syndical organizations of the plant also initiated legal proceedings against Chimko.
Source: Duma (12.06.2003)

Bulgargas offered to State Energy Regulations Commission the price of the natural gas to be reduced on average with BGN 21 for 1000 cubic metres as of July. At the moment the price of the gas is BGN 287.19 for 1000 cubic metres and the prices were increased in the beginning of April. The upcoming reduce is due to the cheaper USD since the beginning of April in comparison with euro and optimization of the costs of the gas company.
Source: Dnevnik (17.06.2003)

BGN 18 million were invested in objects of Bulgargas in 2002. As of 2004 the funds will increase more. At least one year will be prepared an analysis whether the privatization of Bulgargas is efficient. The company must remain state-owned for a long time in order to realize its investment programme.
Source: Pari (19.06.2003)

Overgas Inc reached an agreement with Bulgargas for financial leasing for the construction of a part of the gas pipe Russia – Bulgaria near the gas-distributing stations of Veliko Turnovo, Gorna Oriahovitza and Liaskovetz. The objects are included in the investment programme of Overgas for 2004. The construction of the inner distribution networks in the town will also start.
Source: Pari (19.06.2003)

We received a letter from Gazprom offering the gas supplies to be transferred to Overgas, announced the energy Minister Mr. Milko Kovachev. The idea was Overgas to replace Topenergy – the subsidiary of Gazprom, who has a contract with Bulgargas for import of fuel until 2010. The price of the gas shall not be changed. Overgas intends to invest part of the profit in household gas supply infrastructure in Bulgaria. Gazprom owns 100% of Topenergy and 50% of Overgas.
Source: Trud (23.06.2003)

BGN 3.664 million is the profit of Neochim JSC-Dimitrovgrad, according to the annual financial report of the company. After taxation the net financial result is BGN 2 632 million which is with about BGN 1 million less in comparison with the former year. The incomes from the activity of the company are BGN 125 311 000 and the expenses for the activity are BGN 121 661 000. The debts of the plant to Bulgargas are BGN 19 million. The sales of Neochim JSC keep the level from the last year – about 429 000 tons. The main part, 61 per cent from the fertilizers are being sold at the domestic market.
Source: Pari (30.06.2003)

The glass-producing factory in Beloslav was announced insolvent after three years of legal procedures. The decision was made by the Varna Court of Appeal on June 18 2003. Actually, the magistrates canceled the previous decision from April 12 2001 taken by the Varna District Court, which did not allow the company’s bankruptcy. The starting date of the glass factory’s insolvency is September 30, 1999, according to the court’s decision.
Source: Banker (30.06.2003)

Vratza District Court rejected the claims for declaration in insolvency of Chimko JSC by NEC and Bulgargas JSC. The latter required a declaration in insolvency for Chimko because of debts in amount of BGN 69.4 million and NEC for BGN 33,4 million.
Source: Monitor (04.07.2003)

A new gas suppier, besides Gasprom, may start operating on the Bulgarian market before 2007, if this supplier is capable of delivering at least 25 per cent of Bulgaria's annual consumption. The other possibility is to construct a connection with a European country, which receives the same percentage of its consumption from an alternative supplier, different from the Russian company. Once Bulgaria enters EU, Bulgargas's monopoly will automatically disappear.
Source: Sega (09.07.2003)

The glass-factory Belopal JSC, Beloslav has debts in amount of at least BGN 18.950 million, announced the temporary syndic of the company Mr. Geiorge Budev at the first General Meeting of the creditors of the company, which took place yesterday. Belopal JSC is in a procedure for declaring in insolvency since July 7.
Source: Pari (16.07.2003)

The four companies that have joint property with Chimko-Vratza and remained without electricity because of debts of the fertilizer plant to NEC, will build own electricity distribution network, was reported from Elektrorazpredelenie-Pleven. The equipment will cost totally BGN 25 000.
Source: Pari (16.07.2003)

Bulgargas will invest during 2003 BGN 12 million own funds in the sole in Bulgaria crib for natural gas Chiren. These are 42 per cent of the planned investments of the gas company for 2003. The modernization of the technologies and the renew of the main funds of the gas crib will be finalized and officially opened in October, this year, said the Executive Director of Bulgargas Mr. Kiril Gegov.
Source: Standart (22.07.2003)

Bulgargas is starting negotiations with Gasprom to sign agreement for increased transit of Russian natural gas in the region. Gasprom representatives are expected to arrive in Bulgaria on Monday. The Russian delegation will be led by the member of the company’s Board of Directors and General Director of Gasexport Mr. Alexander Medvedev.
Source: Dnevnik (25.07.2003)

The experts from Gasexport proposed Bulgargas to participate as minor shareholder in different gas companies with municipal share, for example in Sofia or Varna, where the private company Overgas has licenses for gas supply. Bulgargas' scope of activity does not include household gas supply, but the current legislation does not forbid the company to participate as minor shareholder with 20-25 per cent.
Source: Pari (30.07.2003)

Bulgargas and Gasexport may establish a joint company, which will construct the new sections of the transit gas-mains to Serbia and Greece and will collect the fees for transportation of Russian natural gas. This is one of the variants of the transit fees agreement, discussed between the two companies, Mr. Ilko Yotzev - Deputy Minister of Energy said. Bulgargas and Gasexport representatives discussed the execution of the memorandum with the contract for increase of the transit of Russian natural gas, signed during President Putin's visit in Bulgaria in March.
Source: Dnevnik (31.07.2003)

The Deputy Minister of Finances Mr. Nahit Zia became the new member of the Board of Directors of Bulgargas. He will replace Mr. Gati Al Djeburi was dispensed from the position. It is not clear yet if Mr. Zia will become Chairman of the Board of Directors.
Source: Pari (08.08.2003)

In the beginning of next year, Bulgarian Salt Company – Kanotrans is going to construct the first factory for production of fine refined salt in Bulgaria. This was announced by the Manager of Kanotrans Holding Mr. Toni Ikonomov. He explained that the factory will be located on an area of 30 decares in Provadia, and USD 8 million will be invested in it. The plant’s capacity will be 60 000 tons of fine refined salt a year. The annual consumption of table salt in Bulgaria is 40 000 tons The salt will be manufactured through evaporation of brine, which Kanotrans will buy from Provadsol JSC.
Source: Dnevnik (08.08.2003)

Petreko Bulgaria’s gas extraction programme will be ready by October 15, announced the company’s Executive Director Ms. Dorieta Angelova. This means that the construction of the facility will actually be delayed by around a month and a half. Ms. Angelova explained that the delay is due to the fact, that not all foreign supplies arrive according to schedule. The company Petreko Sarl, registered in Luxembourg, which is the sole proprietor of Petreko Bulgaria, signed a concession contract in 2001 with the former State Agency of Energy and Energy Resources, currently Ministry of Energy, for development and extraction of natural gas from the Galata deposit.
Source: Dnevnik (12.08.2003)

Three energy company will receive a credit rating. These are Bulgargas, NEC and Maritza Iztok 2. Currently, procedures for election of an agency, which should evaluate their credit rating, is ongoing.
Source: Standart (19.08.2003)

Bulgargas will accumulate a part of the finances, the company need for the investment programme by a bond issue, announced the Deputy Minister of Energetics Mr. Ilko Kotzev. The details for the bond issue will be announced after the election of an agency, which shall estimate the credit rating of the Bulgarian gaz Monopoly.
Source: Sega (19.08.2003)

The privatization of the Lovech-based company Toplofikatzia has been terminated. PA refused to reveal whether there had been a selected probable buyer. Toplofikatzia was announced for sale in the end of March 2003. According to information from the regional administration, a German company has demonstrated interest in it. It was supposed to buy 434 891 shares, representing 100 per cent from the company’s capital.
Source: Posrednik-Pleven (20.08.2003)

The Portuguese company Gaz Natural is interested ion the privatization of Bulgargaz JSC. The Portuguese company is one of the applicants for the purchase of the Greek gas company DEPA
Source: Dnevnik (26.08.2003)

Bulgargas SPJSC opened a procedure for the election of a company, which will execute the financial audit of the company as of 2003 in accordance with the international accountant standards. The elected company will also consult Bulgargas SPJSC in the area of internal control and other specific areas.
Source: Dnevnik (28.08.2003)

Bulgargas SPJSC may gain 20-25 per cent of the capital of the gas-distribution companies in Sofia and Varna, announced the Deputy Minister of Energy Mr. Ilko Jotzev. The companies have already requested the assistance of Bulgargaz for the construction of the gas-supply networks in Varna and Sofia. Sofia gaz is 100 per cent property of Overgaz Inc. The company has a 10-year license for gas-supply services in Bankya and Bojurishte regions. Varna-gaz is a joint company of Overgaz Inc. and Varna municipality
Source: Dnevnik (29.08.2003)

The average insurance in the 20 most loyal companies insuring a staff to 15 employees is BGN 898, the National Social Security Institute’s information showed. 263 people work in these companies. The companies with a staff of 100 to 250 people employ a total of 4252. The average insurance income there is BGN 699. Top 20 of the most loyal employers in these criteria includes the names of Media Holding, Sheraton ­ Sofia-Balkan, publishing house 168 Hours, Tax Administration, Central Cooperative Bank, Bulgartabac Holding, Economic and Investment Bank, Municipal Bank, Privatization Agency. Etc.
Source: Pari (17.09.2003)

Within the next two weeks will be elected the rating company, which will prepare the credit rating of Bulgargaz JSC, announced the Deputy Minister of Energetics Mr. Ilko Jotzev. Interest in the deal so far have announced Standart&Poor’s, Moody's and Fitch. Bulgargaz has to invest EUR 100 million in the construction of new gas pipelines. The investment could be executed either by loan or by raising of the capital of the company.
Source: Pari (23.09.2003)

State Energy Regulation Commission increased the price limit of natural gas as of October 1 2003 with 10 per cent for consumers from the network of gas distribution companies, and with 9 per cent for consumers directly connected to the distribution network of Bulgargas. The highest price at which the distribution companies will be allowed to sell gas to consumers from the distribution network as of October 1 2003 will be BGN 288.72 per 1000 cubic meters (VAT included).
Source: Pari (30.09.2003)

Gazexport and Bulgargas have signed a new contract to deliver Russia's gas to Bulgaria, according to the Russian AK&M Information Agency. Gazprom said the document was sealed Oct. 8 in Moscow over the meeting of Gazexport General Director Mr. Alexander Medvedev with Bulgargas Chief Executive Official Kirill Gegov. The new contract allows the use of the transit gas-mains to Greece and Macedonia for gas supply of consumers in Southwestern Bulgaria.
Source: Dnevnik (10.10.2003)

Bulgargas received permit for construction of optical highway in the section Ihtiman - Central Office of Bulgargas. This is the last section of the optical cable line Kardam - Sofia, which is a part of the company's information servicing system. The overall length of the optical line is 630 km, and the last section of it is 80-km long. Bulgargas refused to reveal the cost of the section's construction, but emphasized that it will be completed by the end of the year, since the project is a part of the company's 2003 investment program.
Source: Pari (13.10.2003)

Bulgargas reported a profit of BGN 92.022 million after taxation for the year 2002, the company announced. BGN 388 million have been paid in the budget. The company imported 2.958 billion cubic metres of natural gas mainly from Russia through subsidiaries of OAO Gasprom. In 2002, 13.515 billion cubic metres of gas have been transported to the Balkan countries. This represents a growth of 6 per cent compared to 2001. 2741 million cubic metres of gas have been supplied to Bulgarian consumers. In the end of 2002, the company had 270 clients, including 23 gas distribution companies.
Source: Pari (24.10.2003)

Parliament's Energy Commission made a suggestion to the Ministry of Finance to tax Bulgargas as a normal trading company in the budget for 2005. The reason is that according to the draft law for the 2004 budget, Bulgargas should make non-tax payments from the transit of natural gas under the Yamburg agreement in the amount of BGN 75 million.
Source: Pari (13.11.2003)

If we have to count the biggest corporations in America, Japan or Germany, the only necessary thing is to look the exchange screens at Wallstreet, Tokyo and Frankfurt. In every developed economy the stock market is the background of the huge business. There are situated the industrial concerns, banks and insurance companies, big trade chains and the giants in the sector of services. There are also the new technologies – the engine of the growth of every economy. It is quite prestigious to appear at the exchange stage where the whole world sees and assess you. It is also a business question because the capital market feeds the economy and takes the temperature every minute. 345 companies in Bulgaria have a statute of public companies. Almost all of them are on the capital market with a state force and by administrative order of the new legislation. The experiment mass privatization brought shattered shareholders’ structure in many giants of the social economy and in few privatization funds, which hold 15 per cent of the Bulgarian economy. As a result on the exchange came out state monopolists and whole industries. These are the metallurgic giants Kremikovtzi, Stomana and OZK-Kurjali, almost the whole chamical and pharmaceutical industry /ahead with LUKoil-Neftochim, Chimko, Polimeri and Sopharma /, the sea and winter resorts, a big part of the food-processing industry /including the whole tobacco production /, former monopoly structures in the wholesale /Petrol and Toplivo /.
Source: Pari (17.11.2003)

Around 60 per cent of the natural gas produced in Russia and consumed in Turkey is transited through Bulgaria. Around 90 per cent of the amounts destined to Greece and 100 per cent of those destined to Macedonia pass through Bulgaria. This was announced by the Minister of Energy and Energy Resources Mr. Milko Kovachev during an Energy Forum held in Athens yesterday. Mr. Kovachev said Turkey would play an increasingly important role in the transiting of gas in the region, since it was surrounded by gas producer, which is important for Bulgaria.
Source: Monitor (09.12.2003)

In 2004, Overgas is ready to start work on the construction of the gas transportation networks in all 26 towns in the country, the company announced. Three of the towns are Veliko Tarnovo, Gorna Oryahovitza and Lyaskovetz. For the building of the gas networks in these three towns, EUR 9 million have been allocated.
Source: Pari (22.12.2003)

For the fifth year in a row the Bulgarian Chamber of Commerce and Industry is making a rank list of Bulgaria’s leading 100 companies, using the world recognized assessment criteria such as Forbs and Fortune.The selection for 2002 has been made between 400 Bulgarian companies, distributed in two top lists. TOP 100 -1 includes companies, ranked on the basis of their incomes from sales, while TOP 100 – 2 has an additional criteria, excluding the companies whose debts to suppliers, employees or social funds exceed their profit. For the first time the experts from Bulgarian Commercial and Industrial Palace have prepared two more rank lists – TOP 50 of small and medium-sized enterprises and TOP 50 of the public companies. The first rank list includes companies with incomes from sales exceeding BGN 10 million in 2002, rated by their production capacity per employee working under labour contract. The second list includes winning companies, traded at the Bulgarian Stock Exchange – Sofia, rated by the return of the invested own funds in 2002 and by the change of this indicator compared to 2001. The private commercial companies are already pushing away the big state-owned enterprises from the top positions of the best developing companies in Bulgaria. Two industrial companies occupy the two top positions by profit, correlated to BGN 100 incomes from sales. The number one company is Pernik-based Stomana registering a profit of BGN 61 per BGN 100 incomes, and the number two company in the list is the cement factory Vulkan – Dimitrovgrad, which posted BGN 14 per BGN 100 incomes. Sofia-based company Telelink is number three with a result of BGN 13, followed by Hewlett Packard Bulgaria (BGN 10).
Source: Dnevnik (23.12.2003)

Bulgargas sells the natural gas to its consumers at lower prices as of January 1 after a decision of State Energetics Regulation Commission. The consumers, associated to the gas-supply network, will pay BGN 219,27 per 1000 cubic metres without VAT added and the consumers, associated to the gas-distribution network – BGN 226,99 per 1000 cubic metres without VAT added. This is the lowest selling price of natural gas for the last 2 years.
Source: Dnevnik (05.01.2004)

A day after a gas explosion killed 3 workers and injured another 18 on site of Sofia-based metallurgical plant Kremikovtsi, it transpired that the metals firm and the National Electricity Transmission Company (NETC) had signed last week a deal rescheduling the payment of 70 mln levs in overdue power bills over a 10-year period. The debt was accumulated after 2001 and accounts for 31% of NETC's overall receivables. The energy ministry, which okayed the deferral, refused to comment. Under the repayment contract, Kremikovtsi is obliged to settle its debt with equal monthly instalments. The metallurgical company consumes over 100 gWh of electricity annually. After taking over the company in 1999, current Kremikovtsi owner Finmetal Holding hired Deloitte&Touche to audit the metallurgical company. The check revealed some 80 mln levs of off-the-books debts ran up towards the National Social Security Institute, the tax and customs authorities. A working group from the economy ministry recommended in 2003 to write off 77 mln levs of these hidden liabilities but its proposal was never reviewed by the government . A total of 47 mln levs in debts towards NETC and 83 mln levs of outstanding payments to state-owned gas utility Bulgargaz were forgiven prior to Kremikovtsi's privatisation. In 2003, Kremikovtsi clinched a 10-year repayment deal with Bulgargaz similar to its current agreement with NETC. Kremikovtsi also owes 4 mln levs to railway carrier BDZ and 4.5 mln levs in pollution charges to the environment ministry. Despite the red ink, the metals firm reported a January-September 2003 profit of 53.7 mln levs and sales of 552 mln levs but both figures were flattered by an FX trading profit. Total liabilities stand at over 1 bln levs, including a 340 mln levs in debts towards connected companies and 310 mln levs in unpaid bills to suppliers. Experts attribute the income upside to the fall launch of a blast furnace. A new line for continuous casting, commissioned by Kremikovtsi to Austria's VA Industrieanlagenbau GmbH&Co, missed its late-2003 launch target. Kremikovtsi is still involved in long-running talks with Marcegaglia for the acquisition by the Italian steel group of some of Finmetal's equity.
Source: Dnevnik (12.01.2004)

As a whole, no candidates appeared during yesterday’s tender for the sale of the glass factory Crystal. The tender was organized following decision by a meeting of the company’s creditors. Crystal’s syndic Ms. Violeta Manolova announced the initial price of the enterprise was BGN 1.198 million, according to an evaluation, made by a licensed company. Her forecast is that at the next tender, the price will be cut by half. If no candidate appears on it, the company will be divided and sold in separate parts according to a decision by the meeting of creditors.
Source: Pari (13.01.2004)

The American company CBM Energy Limited will receive one more year for the license for searching of natural gas in Dobruja. This time is necessary for final works of the US project for extraction of methane from coals, was reported from the Ministry of Energetics. The methane will be sold to Bulgargas. So far the company has invested USD 1 million in the project.
Source: Sega (13.01.2004)

FITCH will make the credit rating of Bulgargas. The agency won in competition with Standard & Poors and Moody's. Within 2-3 weeks is expected the credit rating of the company to be ready, announced the Deputy Minister of Energetics Mr. Ilko Iotzev. In 2003 the clients’ debts to Bulgargas have reduced with BGN 15 million in comparison with 2002, said the Executive Director of the company Mr. Kiril Gegov. In the end of 2003 they were BGN 270 million. The biggest debtors of the monopolist are the heat-distribution companies.
Source: Pari (21.01.2004)

In the end of last year BGN 35 million of the debt of Kremikovtzi to Bulgargas were rescheduled for 10 years. The plant is a big consumer and increased the consumption with 30 per cent and its closing will lay-off over 8000 people. The rest BGN 5 million were generated in the days of the New Year. This is one more gesture to the metallurgic plant from the side of state-owned companies after the remitted debts to the gas company, rescheduled debts to NEC and etc. In the end of last year the national gas monopolist had receivables of BGN 270 million.
Source: Sega (22.01.2004)

Bulgargas intends to offer for rent a part of its optical telecommunication network capacity, Mr. Ilko Yotzov – Deputy Minister of Energy and Energy Resources and member of the state company’s Board of Directors, announced. According to him, the company’s network, which is 650 km long, is the second longest after that of BTC. Mr. Yotzov added that a number of major telecommunication operators such as MobilTel, Orbitel, Spetrum Net, Cablenet, etc., have sent inquiries to the company.
Source: Monitor (26.01.2004)

The accounting profit of Bulgargas for 2003 is BGN 124 MN, the company's preliminary calculations show. About BGN 370 MN has been remitted to the budget in direct and indirect taxes and transiting fees, which places the company among the major contibutors to the Treasury. The state-run gas monopolist may also increase its proceeds by providing telecommunications services for commercial purposes. It has about 650 km of fibre optic trunk-lines, towards which telecom operators show huge interest. Gas consumption exceeded 2.9 BN cu m last year, 6% up from 2002. The energy sector remains the biggest client with 39% (1.1BN cu m) of the total conusmption. Next comes the chemical industry with 29.7% (865MN cu m), maintaining the 2002 level of consumption despite the decommissioning of the Vratsa-based Chimco. In metallurgy consumption was 418MN cu m, or 14.3% of the total. Bulgargas major customer from this sector is the Krememikovtsi iron ans steel works, whose consumption rose 30% from 2002. Consumption declined in the cement industry (due to the use of coal as fuel) and in glass-making (after the enterprise in Razgrad stopped operation). Bulgargas has managed to supply the agreed quantities of gas to all its clients and has no liabilities. The company closed 330 contracts within that period and natural gas was being delivered to 270 customers, the 27 gas distribution companies in the country among them. But things stand differently regarding Bulgargas receivables, totalling BGN270MN (BGN15MN down from 2002). Its biggest debtors are the domestic central heating utilities, whose liabilities amount to BGN136MN, down BGN3MN from 2002. The Sofia Central Heating Company is the biggest debtor, owing BGN112MN, followed by the untilities in Plovdiv (BGN10MN), Bourgas (BGN 5.5 MN), Pleven (BGN5MN) and Shoumen (BGN3MN). The biggest debtor among industrial enterprises is Kremikovtsi, whose liabilities total BGN40MN. Bulgargas has rescheduled repayment of BGN35MN for 10 years but nevertheless there are problems regarding the current payments, the gas company's Executive Director Kiril Gegov explained. A total of 13.5BN cu m of natural gas were transited to the Balkan countries in 2002. The greatest increase of delivered quantity - by 15% - was to Greece, while gas supply to Turkey dropped by 1.7 per cent.
Source: Banker (26.01.2004)

IFC, the private-sector arm of the World Bank Group, will bankroll the construction of a 100MW combined-cycle gas facility on the site of the Sofia thermal power plant (TPP) commissioned to U.S. company Horizon, Bulgarian deputy energy minister Mr.Angel Minev said on Wednesday after meeting with IFC official Denise Clark. Total project value is estimated at USD 100 mln with 70 per cent coming as loan-financing. A Horizon Energy Bulgaria (HEB) company wholly-owned by Horizon was registered here on Wednesday. Toplofikacia, the heating utility of the Sofia municipality, will acquire 30% of HEB in exchange for land property. Horizon plans to launch the new facility by 2006. The U.S. company is in talks with the National Electricity Transmission Company (NETC) for a long-term power purchase deal. State Energy Regulation Commission chairman Konstantin Shushulov said another topic that was discussed with IFC on Wednesday were the incentives for the production of co-generated electricity. Under the new energy law, NETC buys at preferential tariffs the power output of combined-cycle facilities with capacity of up to 50MW but in the rest of the cases the pricing is cost-based, Shushulov said.
Source: Dnevnik (05.02.2004)

One of the requirements for our accession to EU is to liberate Bulgarian electricity and gas markets. Now they are held by monopolists – NEC buys the entire electricity, produced by the stations and sells it at regulated prices for public and industrial needs. Bulgargas is the sole importer, wholesaler and transit company for natural gas in the State. The new Energy Law envisages the markets of electricity and gas to liberate regularly. For this purpose will be allowed privileged consumers that will be able to buy energy from the producer that sells at the most reasonable prices and to transfer it through the networks against a transfer fee. By the end of March has to be adopted a decree for access of other countries to the electricity-transfer and distribution network. According to the decree, the privileged consumers in 2004 are those with over 100 million and with 40 million kw/h annual consumption of electricity. In 2005 privileged consumers will also be those with over 20 million and during 2006 – with over 9 million kw/h. The market liberalization must be full even if the public subscribers choose the supplier in July, 2007. At the moment the market does not stimulate the producers to cut their costs, neither to offer the consumer a lower price of the final product. The price, at which NEC buys out the electricity from them, is confirmed by the State Energetic Regulation Commission in accordance with the costs that can be proved by the respective company. The Commission has already defined that in 2004 23 per cent from the producers’ manufacture have to be sold at the market principle and they must find clients for it, otherwise there will be registered a loss. The percentage of the non-realized energy will grow proportionally with the extents of the market’s opening. This will force them to cut the production costs in order not to bankrupt. For the first six months of 2004 from TPS Maritza-iztok 2 were liberated 880 000 MW/h, from TPS Varna – 520 000 MW/h, from TPS Bobovdol - 340 000 MW/h. TPS Ruse can sell at the free segment electricity, produced only by IV block. The electricity from NPS Kozlodui and TPS Maritza-iztok 3 will be sold only to NEC. Companies that receive licenses to trade with electricity from the State Energetic Regulation Commission, will be able to buy electricity from all stations, to mix cheaper and more expensive productions and to offer lower prices than NEC. The trade will be realized through bilateral contracts between the producers and consumers. On them will be registered the main quantity of electricity - 95-97 per cent and for the rest 3-5 per cent will have a balance mechanism. The prices will be confidential and won’t be known even to the trade operator. The privileged consumers have to pay to NEC a transfer fee for using the network that is BGN 11.80 per MW/h, without VAT as of July 1, 2003. The first privileged consumers are 10 big industrial companies with consumption over 100 billion kw/h and without debts to NEC and electricity-distribution companies. These are Maritza-iztok mines, Stomana industry, KZM, Assarel Medet, Elatzite med, Umicore med, Devnia cement, LUKoil-Neftochim, Agropolichim and Neochim. Their interest to take part in the free market is dictated by the opportunity to drop out NEC and to deal the quantity and price of the electricity directly with the producer.
Source: Pari (05.02.2004)

Black sea technologic company, a property of the Italian company AMGA, won in the tender for receiving of gas-distribution license for Mizia region, announced the Deputy Chairman of the State Energetic Regulation Commission Mr. Ignat Tomanov. In the competition also took part Technotermengineering and Plevengas, property of Overgas. The license will be issued for 35 years and the company will invest EUR 75-76 million for 10 years in construction of the network in the region.
Source: Dnevnik (11.02.2004)

BGN 215.483 million are the debts of the fifty biggest debtors to the National Social Security Institute in the end of 2003. The amount includes the principal and the calculated interests. The top list is headed by the metallurgic plant Kremikovtzi, then follow Stomana-Pernik, Varna shipyards and Vidachim. The average insurance income in the 20 most correct companies with 15 employees is BGN 885. In these companies are working 267 people. Among them are Siemens business services, Coca-Cola Bulgaria, Daewoo-Bulgaria, Crown Agents, TBI leasing and others.
Source: Pari (17.02.2004)

The management of Central Gas-supply Haskovo JSC requested from the State Energy Regulation Commission to deprive the rights for distribution of natural gas the present licensee Gazosnabdyavane Haskovo and to issue a license for a term of 15 years its company to its company. There is a gas-supply system in Haskovo, but for the last three years the supply of natural gas has been ceased and the municipality is losing BGN 1.2 million annually.
Source: Pari (18.02.2004)

Energy Minister Mr. Milko Kovachev may increase the capital of Bulgargas by March 15 2004 with the value of the assets of the gas network, which are financed through incomes from sales of natural gas according to the Yambourg agreement and from transit, according to a decree about the implementation of the 2003 state budget, published in the State Official Gazette. Ministry of Energy and Energy Resources explained the company’s capital would not be increased, adding this text was a part of a decree published in 2001.
Source: Pari (18.02.2004)

The Minister of Energetics Mr. Milko Kovachev can increase the capital of Bulgargas by March 15, 2004 with the amount of the assets of the gas-transfer system. The assets are financed by net sales of natural gas in accordance with Jamburgsk agreement and by transit. In 2002 the investment programme of the company finished and the gas on the agreement reduced and the opportunity for increase of the capital was not used.
Source: Pari (18.02.2004)

No offers were submitted for the tender for sale of Chimco JSC’s property, earlier announced by the regional directorate of the State Receivables Collection Agency – Vidin. The offers for the secret bidding tender had to be opened yesterday, but the Agency announced there were no buyers. According to the law, the initial reduction in the price for the next tender will be from 100 to 80 per cent of the property’s assessment, and could further be reduced to 70, 60 and 50 per cent.
Source: Pari (19.02.2004)

Bulgargas’s capital won’t be increased, in spite of the opportunity for its rising, envisaged in the Government’s decree for execution of budget 2004. A decree was published in the State Gazette, which allows Mr. Milko Kovachev to rise the company’s capital by March 15 with the amount of the fixed assets from the gas-transfer system. At the moment the shareholders’ equity of Bulgargas is BGN 645.3 million.
Source: Dnevnik (19.02.2004)

The companies with over 50 per cent state-owned share that realized profit last year and do not have debts, will be able to increase their employees’ salaries within 5 per cent. A special decree was adopted by the Ministers. The decree refers to 60 trade companies, among which are BTC, BDZ, the 7 electricity-distribution companies, the heat supply companies, NPP Kozlodui, Terem, WMZ-Sopot, Bulgargas, Navigation Maritime Bulgare and others.
Source: Pari (20.02.2004)

LUKoil Neftochim received the award 2003 Biggest Tax Payer. The prize was awarded to the company’s Director Mr. Valentin Zlatev during an official ceremony by Minister of Finance Milen Velchev personally. In 2003, LUKoil Neftochim paid taxes in the amount of BGN 1.5 billion. Bulgaria’s major tax payers consist of around 500 companies, that pay 66 per cent of all taxes paid in Bulgaria. In 2003, they paid in the budget almost BGN 4.5 billion. The companies nominated for the award Big tax payer were divided in eight categories according to their activity. The winners were Blagoevgrad BT, Bulgargas, BTC, Metro Cash and Carry Bulgaria, Albena, Bulbank, GBS – Sofia, Balkan News Corporation.
Source: Standart (23.02.2004)

The case for the insolvency of Diamant glass factory will be reviewed at the Supreme Cassation Court on March 11, announced the lawyer of the company Mr. Veselin Zapryanov. But even if the court rules in favour of the company it has no chance to start working again. Diamant is among the greatest debtors of Bulgargaz, with debts in amount of over BGN 11 million.
Source: Banker (23.02.2004)

The Executive Director of Bulgargas Mr. Kiril Gegov and the Chairman of the Managing Board of Rurhgaz Mr. Fritz Gautir are going to sign a cooperation agreement today. Mr. Gautir is a member of the delegation, accompanying the German Minister of Economy and Labour Mr. Wolfgang Klement, who is on a visit in Bulgaria for the opening of the Bulgarian-German Chamber of Industry and Commerce in Sofia.
Source: Pari (09.03.2004)

Metan group JSC opened on Tuesday a new gas-station in Varna, announced the Manager of the company Ms. Jordanka Zhivkova. The value of the investment was BGN 900 000. The capacity of the methane-station is 800 cub.m. per hour.
Source: Dnevnik (10.03.2004)

The ammonia and carbamide facilities in Chimco are expected to start operating in the end of March, Mr. Andrey Semerdjiev – Director of the fertilizer plant said. BGN 1.5 million have been invested in the partial modernization of the nitrogen fertilizer production. The plant was expected to start operating earlier, but the starting date was delayed because of the negotiations with the main supplier Bulgargas.
Source: Standart (12.03.2004)

Nabuko gas-pipeline for transit of natural gas from the Caspian region to Western Europe will be launched in exploitation during 2009, was reported from Bulgargas. The deadlines for launching the gas pipeline in exploitation will be accelerated. The preliminary financial, marketing and economic research of Boston Consulting Group planed the pre-project research to be finalized by 2003-2004, the working project – by 2005-2006, the financing to be provided by 2007-2008, and during 2009 to be initiated the construction.
Source: Pari (15.03.2004)

Supreme Court of Cassation canceled a decision by Vratza District Court, ruling against NEC’s and Bulgargas’s claims for Chimco’s insolvency. The two energy companies filed for Chimco’s insolvency in 2002, because the company had BGN 100 million debts to them. The case will be returned to the court in Vratza, where a new membership will be inspecting it.
Source: Sega (25.03.2004)

In 2003, 6.2 per cent more natural gas has been consumed in Bulgaria compared with the previous year, Ministry of Energy and Energy Resources reported yesterday. This happens for the first time in years, and the reason for it, according to the ministry, are the new consumers, which were connected to the network and the stabling of gas prices. Although Bulgargas bought gas at prices 20 per cent higher, it raised it prices with only 3.46 per cent compared to the previous year, because of the lower USD rate. Natural gas transit, however, from which our state profits much more, has grown with only 0.3 per cent due to the smaller supplies to Turkey, which have been compensated with bigger supplies to Greece.
Source: Pari (26.03.2004)

Mr. Lilian Vachkov is former Director of the metallurgic plant Kremikovtzi. At the moment is attracted as an expert in the Parliament Commission, which inspects the plant’s state after the tragic accident that has recently happened, when died 4 people. He left the plant in the end of 1996. - Mr. Vachkov, what is Parliament Commission Kremikovtzi doing at the moment? What is the situation after the tragic accident? - It is not quite clear what is happening in Kramikovtzi. According to the plant’s management, everything is ok. There are some optimistic forecasts because the plant manufactures and sells products. - So, the scandals with the unpaid salaries have ended? - I’ve been in the metallurgy for 40 years now but I did not remember such a boom of the prices in the sector. It is strange that the plant is selling and there is no money. The inspections reveal that there are not funds for labour security, the salaries and insurances are not paid. - In June expires the 5-year privatization deadline, what’s next? - We can observe two kinds of privatization in the metallurgy: successful, in Stomana-Pernik, where the Greek owners realize their engagements, the salaries are over BGN 400 - 500. The second one is not successful, which is Kremikovtzi case. In 1999 the management of the plant announced that if it was not sold, it would have bankrupted. On June 16 Daru metals bought the plant for USD 1 and promised to pay all debts and to bring fresh USD 300 million investments for 5 years. In my opinion, now will be very hard to close Competition chapter in the negotiations with EU. - Because of Kremikovtzi? - Because of the governmental policy connected with the plant. Some time ago Metal bulletin, issued in London, warned that Bulgaria had subsided a private company, which is forbidden in EU as a disloyal competition. The State also granted to Kremikovtzi a loan of BGN 400 million at relieved regime. - Didn’t the Competition Protection Commission react? - The Commission reported that this is not allowed, except if it is not about closing of non-efficient capacities. Probably this will be our explanation before EU. At the moment is being prepared a reconstruction plant of Kremikovtzi. But how will be proved that were closed capacities for 500 000 tons metal per year? If they are closed so quickly, this means hundreds of dismissed workers. - But the things were getting better, were not they? - There is something very important, which is not mentioned. Kremikovtzi did not have any debts to NEC as of the day of privatization. On March 18, 2003 Post-privatization Control Agency found out that the debts to NEC were already BGN 65 million for 3 years. The situation with Bulgargas is the same – the accumulated debts reached BGN 44 million. The debts to the National Social Security Institute on February 26, 2003 were BGN 72 million. However, the State did not require from the plant these funds, amounting to BGN 1.4 billion. With such a privilege were not honoured either Stomana – Pernik or the plant in Debelt. - What’s the explanation? - I do not know. There is one more strange item in the privatization contract – the buyer is obliged to service the Austrian debt of USD 70 million, taken because of the machine for permanent steel overflow. However, the State did not define a creditor and there were not any payments. But there are calculated interests. - What is the major problem, according to you? - In the trade activity. This is the black box of Kremikovtzi. However, the Parliament Commission does not have access to there. There are rumours for the way of sale through offshore family companies. There are also doubts connected with the bankruptcy of the pipe rolling plant of Kremikovtzi because a competitor may be favoured from the free 180 000 tons. - Are there any guilty for the break-down in the plant? - There has already been prepared a report of the internal commission and the labour inspection. The break-down exploded at first furnace after many reconstructions. It proved to be that the gas-purifying equipment was repaired. There always has to be an alternative in the metallurgy if something does not work out. The water had to be started from the other water pipeline. - What are we going to expect after June 16? - There are two alternatives. After this date the owner is free to do anything with Kremikovtzi, even to cut the plant into scrap. If the State is reliable, it can terminate the contract and to declare the plant for sale. Buyers will be found.
Source: 24 chasa (29.03.2004)

The price of natural gas will be reduced by an average of 3.3 per cent in the second quarter of 2004, State Energy Regulation Commission decided following proposal made by Bulgargas. The new prices will become effective as of April 1. For consumers, connected to Bulgargas’s distribution network, the price will be BGN 213.9/ 1000 cub.m. (VAT not included), which is BGN 6/1000 cub.m. lower than the current price. For clients of the gas-distribution companies the reduction is with almost BGN 7/1000 cub.m. to BGN 220.81/1000 cub.m. (VAT not included). The main reason for the lowering of the price is the lower USD rate.
Source: Pari (30.03.2004)

The price of the natural for each group of consumers may be different, states the project of a decree for regulation of the prices of natural gas, prepared by State Energetics Regulation Commission. The company, which supplies natural gas, will propose to the Commission for confirmation different groups of consumers. They may be distributed in accordance to the amount of the consumption or by other indicators. It is expected that the greatest consumers of natural gas will have the right to buy natural gas at preferential price. This will make more competitive the production of chemical factories like Agropolichim, Orgachim, Neochim, Polimeri, metallurgic plants Kremikovtzi and Stomana Industry, cement and glass factories and of the greatest consumers of natural gas – heat-supply companies.
Source: Pari (30.03.2004)

The drop in the price of natural gas with BGN 6.00 per 1000 cub.m. excluding VAT as of the beginning of April will have almost no effect on the activity of the big consumers of natural gas. On Monday State Energetics Regulation Commission decided that Bulgargaz should lower the prices with average 3 per cent to the level of BGN 213.09 per 100 cub m., excluding VAT. These are the utmost prices and Bulgargas and the gas-distribution companies may sell at these prices, announced the Chairman of the Regulatory Commission Mr. Konstantin Shushulov. Heat-supply companies occupy about 33 per cent of the market of natural market. Representatives of Stomana Industry commented that the company would not feel the drop in the price. During the last year metallurgy has consumed 418 million cub.m. natural gas. The decline in the price of the gas is due mainly to the drop in the exchange rate USD/BGN as of the beginning of the year and the reducing of the transit of natural gas for the neighbor countries with 180 million cub.m.
Source: Dnevnik (30.03.2004)

Bulgargas started negotiations with the companies Obritel, Netera, and Hungary’s Pangel for the use of its optical network. On Monday, the company’s Board of Directors decided to continue the negotiations. Its lawyers are discussing the legal form of the future agreement, which will most probably be clear within a month. According to Bulgargas’ management, contracts may be signed with one or more than one companies, as long as their offers are acceptable.”We are leading negotiations with different companies, which are willing to use a part of the network’s capacity, since additional optical fibres were put, which will allow the transfer of data,” Mr. Kiril Gegov – Executive Director of Bulgargas, said.
Source: Dnevnik (31.03.2004)

NEC signed a contract with Standard & Poors for the elaboration of the company’s credit rating, the company announced. The agency was selected through public procurement procedure among other agencies such as Moody’s and Fitch. The electrical distribution company needs a rating because of its intention to issue an euro-bond loan for the implementation of different project and searching of additional methods of financing.
Source: Dnevnik (31.03.2004)

Bulgargas and Cabletel are going to construct a national optic infrastructure. The two companies signed a frame agreement for strategic cooperation. They did not point any concrete projects and ways, on which they will work because at the moment the details are still discussed. The investment programme of Bulgargas envisages an investment of BGN 3 million in the optic infrastructure, said the Director of the gas company Mr. Kiril Gegov.
Source: Dnevnik (08.04.2004)

On April 15 and 26 in the State Receivables Collection Agency – Vratza will be held two open-bid tenders for totally 23 self-contained parts from the fertilizer plant Chimko JSC. The total initial tender prices of the objects are BGN 7 711 969. On the bidding that will take place on April 15 will be offered five self-contained parts with total price of BGN 3 196 151. The total amount of the initial tender prices of the rest 18 self-contained parts, which will be sold on April 26, is BGN 4 515 818.
Source: Dnevnik (09.04.2004)

A Bulgarian-Ukrainian Business Council will be established tomorrow within the frames of the bilateral business forum, organized by the Bulgarian Chamber of Commerce and Industry (BCCI). Representatives of 11 Ukrainian companies, accompanying Ukraine’s Minister of Foreign Affairs Mr. Kostyantin Grishchenko during his official visit to Sofia, will take part in the forum. The companies are operating in the field of power engineering, oil and gas industry, machine building, mining, river transport, etc. Some of the Bulgarian companies taking part in the forum are Bulgargas, Metalsnab Holding, Stomana, Schenker, Metro, Technomarket, Technopolis, etc.
Source: Pari (13.04.2004)

The Cabinet will grant BGN 12.6 million to Sisecam for its plants near Targovishte. The money will be used to build the infrastructure of the two facilities. According to the preliminary accounts, NEC will have to invest BGN 6 million in the building of power transmission lines network. Bulgargas will invest over BGN 900 000 in the gas distribution network. The rest of the money will have to be used for the building of a water-main and waste waters purifying station, road and railway transport connections.
Source: Standart (16.04.2004)

A private company applied for a license from the State Energy Regulation Commission for storage of natural gas from the depleted deposits Devetaki and Uglen, the commission announced. Currently, Bulgargas holds a similar license for the depleted gas depository Chiren.
Source: Pari (19.04.2004)

Today Vratza District Court may initiate a new lawsuit following claims by NEC and Bulgargas for the announcing of the fertilizer plant Chimco JSC in insolvency. On April 6, the lawsuit was postponed for April 20, because Chimco did not have valid representation. Mr. Nikolay Vuzev and Mr. Vasil Velinov, who are members of the company’s management, did not appear in court as witness. Chimco’s lawyer was not in court either.
Source: Pari (20.04.2004)

The management of Chimco has been selling the company’s long-term assets and real estate illegally, according to official letter addressed by the Deputy Minister of Justice Mr. Sevdalin Bojikov to the Government and labour union KNSB – Vratza. Over the period December 2002-Decmeber 2003, without the permission of the syndic Ms. Rositza Tomova, installations, spare parts and materials for scrap were sold to different companies. The investigation found this property was under restraint and its sale was illegal. Yesterday, Vratza District Court started the lawsuit for the plant’s insolvency, following claims by Bulgargas and NEC for debts in the amount of BGN 140 million.
Source: Standart (21.04.2004)

BSE made a top list of the 100 Bulgarian companies with a major private share, the most appropriate for potential issuers of papers. The top list includes totally 100 companies, contained in 13 different sectors and the interest in the food-processing industry is the greatest. Among the 15 graded companies, from this sector are popular producers like Tandem-V Ltd., Vinprom-Peshtera JSC, Kendy Ltd. and Kenar SP Ltd. Among the appropriate companies from the trade at first place is Doverie Briko JSC – the owner of the chain of stores Mr. Bricolage and from the hotel and restaurant-keeping business is Varna-based company Happy. The selection was made among 7342 companies. The survey of the top list was prepared by SFB Capital market by order of the stock exchange and is based on the accountant and financial documents of 7342 companies for 2001 and 3937 for 2002.
Source: 168 hours (26.04.2004)

Varnagas JSC is going to invest over EUR 800 000 in the gasification of Varna this year, the company announced. Varnagas holds a gasification license for the regions of Odesos, Primorsko and the resort complexes Golden Sands and St. St. Constantin and Helena. According to plant, the construction of the gas-main, starting from Bulgargas’ distribution station in Vladislavovo, should start in June. Over the next 10 years, Varnagas is going to invest a total of EUR 15 million in the gasification of Varna. So far, Varnagas has invested EUR 700 000 in designer activities.
Source: Monitor (26.04.2004)

The first by its kind specialized exhibition for the petrol and gas sector "Petroleum Sofia" was opened yesterday in Inter Expo Centre. Petrol, Shell, Prista Oil and Opet/Aygaz are among the 43 Bulgarian and international companies that present over 200 products. During the forum will be also organized bilateral meetings between representatives of the State Energetic Regulation Commission and the Turkish Commission for regulation of the energy market and between Bulgargas and the Turkish gas company BOTAS.
Source: Sega (28.04.2004)

For the first time since 1998, Kremikovtzi registered a net annual profit of almost BGN 120 million. The loss from previous years has been gradually reduced from BGN 170 million in 1999 to BGN 10. 680 million in 2002. The net incomes from sales last year were in the amount of BGN 680 352 million. The average sale price per ton production grew last year, reaching BGN 555 per ton. In 2003, Kremikovtzi’s old debts to NII from the pre-privatization period. They were due in extended payment within a period of 36 months. In the same way, the company reached agreement with NEC and Bulgargas to pay up its debts to these companies in a long-term period at equal monthly installments.
Source: Company information (29.04.2004)

Bulgargas has opened a procedure for supply of winter, summer and all-seasonal automobile tires. The deadline for submission of offers is June 4. The deadline for execution of the order for supply of summer and all-seasonal tires is one week after the signing of the contract. The supply of winter tires is due no later than October 1. The guarantee for participation in the tender is BGN 1000.
Source: Dnevnik (04.05.2004)

Overgas Inc. reported a BGN 63.8 million incomes for the first quarter of the year. This is 20 times higher than the company’s financial result for the same period of last year, when revenues were in the amount of BGN 1.84 million. The net profit for the review period was almost BGN 2.8 million, which is 10 times premium to the same quarter in 2003. According to company information, the better fiscal indicators were a result of the increased sales of natural gas in the country and the improved fuel distribution system. Another reason is the gas supply contract, signed between Overgas Inc. and Bulgargas in August 2003.
Source: Pari (04.05.2004)

Gazosnabdyavane-Rousse signed its first natural gas supply contract with a Rousse-based company. Gazosnabdyavane is a joint venture between Overgas and Rousse municipality. The contract has been signed with the construction company MISS’96 Ltd. Gazosnabdyaven Rousse has been provided with EUR 2 mln by Overgas to build the 16-km household gas distribution network and 18-km public and administrative network, which will serve around 20 public and administrative facilities.
Source: Dnevnik (06.05.2004)

The project Nabuko for the building of a gas-main from the Caspian region through Bulgaria to Central Europe, received the support of the Dutch gas company Gasunie. The company has started negotiations with the founders of Nabuko about the possibility of building a gas-main with a length of 1400 km connecting the end point of Austria with the Netherlands. This was announced by Mr. George Werber, CEO of Gasunie in front of the Iranian Gas Export Conference.
Source: Standart (11.05.2004)

US-based Ropa Bulgaria Holding LLC, represented by Mr. Venelin Gachev, has brought in a claim to join Chimco’s insolvency legal procedures, initiated by the company’s main creditors – Bulgargas and NEC. The claim was registered in Vratza District Court on April 27 2004, but the court refused to list the foreign claimants in the process, Ms. Penka Alexandrova, Chairperson of the membership leading the case announced.
Source: Pari (20.05.2004)

The average social security income in the 20 most correct companies, employing up to 15 people, is BGN 989, according to a reference on the most correct insurers in the first half of this year, published by National Social Security Institute. The total number of employees engaged in them is 248. Some of the entities included in the list are the embassy of Switzerland, Prista Oil Trading, BM Leasing, Sony Bulgaria, Coca-Cola Bulgaria, Biochim Leasing Bulgaria, 3M, Solvay-Bulgaria, etc. BGN 216.061 million are the unpaid insurances of the 50 biggest debtors of the National Social Security Institute. The top list is headed by the metallurgic plant Kremikovtzi, followed by Stomana-Pernik, Varna shipyards and Vidachim.
Source: Pari (21.05.2004)

Private subscribers from Pleven owe a total of BGN 6 600 000 to TPP after the end of the heating season, Ms. Ivanka Burdjeva, Deputy Economic Director of Toplofikatzia announced. The sum was bigger than last year, because some of the prices of the services had been changed, but the overall situation has not altered significantly, Ms. Burdjeva added. The thermal plant owes to the fuel supplier Bulgargas over BGN 4 million.
Source: Posoki-Pleven (25.05.2004)

The price of natural gas will jump with 11 per cent in July, Minister of Energy and Energy Resources Mr. Milko Kovachev forecasted. Bulgargas has cut the price of the blue fuel two times since New Year – once with 8 and once with 3 per cent. The price will most probably reach its level from the end of 2003.
Source: 24 chasa (26.05.2004)

Kremikovtzi, the Sofia-based metallurgical plant 71%-owned by Finmetals Holding, is about to wrap up negotiations with Indian steel powerhouse Ispat International on a co-management deal that could result in a USD 170 mln investment in the Bulgarian company, Dnevnik learned from Kremikovtzi executive director Mr. Valentin Zahariev on Thursday. The investment will be spent to streamline production costs, crack new foreign markets, overhaul one of the blast furnaces and to modernise the electric-arc furnaces and the cast iron production, Kremikovtzi said. Annual output is seen rising to 2.2 mln tons. Co-operation between Kremikovtzi and Ispat kicked up a gear in February 2004. The Indian firm supplies coke to Kremikovtzi and semi-finished products for its international operations. In 2003, Kremikovtzi swung to profit for the first time since 1998, banking BGN 120 mln. But most of the upside was due to the transition to International Accounting Standards and only BGN 39 mln were actually generated by its core production. The losses of the privatised company were once as wide as BGN 170 mln but were gradually reeled in to BGN 10.6 mln in 2002. Sales totalled BGN 680.352 mln last year. Some BGN 397 mln were injected in the company in 1999-2003. Despite the reversal of its financial fortunes, Kremikovtzi still remains one of the biggest debtors in the Sofia region. The company owes substantial amounts to the National Social Security Institute, the tax administration, the National Electricity Transmission Company and gas supplier Bulgargaz. Some of the debts have been rescheduled but the bulk of the red ink consists of legacy debt pre-dating the 1999 privatisation of the company and is being contested in court by Finmetals. The owner, for his part, owes USD 48 mln for failing to honour post-privatisation commitments. The investor pledged to pump USD 300 mln in the metallurgical plant over a five-year period but investment spending totalled a mere USD 61 by 2002.
Source: Dnevnik (28.05.2004)

The Agency for Post-privatization Control is to make a claim against the buyer of Chimco in Paris Court of Arbitrage, Mr. Rusi Statkov, member of the Agency’s supervisory board said. The agency is going to sue the owner of the fertilizer plant for extremely big forfeits under the privatization contract. The claim for non-execution of the obligations under the investment program is in the amount of USD 6 700 000, and for the employment – BGN 2 500 000; for non-observing the three-lateral contract with Bulgargas – BGN 1 000 000.
Source: Shans Express Vratza (31.05.2004)

The Government and IMF have agreed to limit to 5 per cent the general state account on the salaries in 60 public companies, which are monopolists, and which have received subsidies or have registered a loss in the third quarter of last year.
Source: Trud (03.06.2004)

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)

The Managing Board of Chimco JSC will hold General Meeting of the company’s shareholders tomorrow. The report on the company’s activities in 2002 and 2003 and the annual accounting reports and balance sheets for the two fiscal years are expected to be adopted. According to unofficial information, the company’s 2002 loss is in the amount of almost BGN 4.5 mln., and its debts to creditors reach BGN 170 mln.
Source: Pari (11.06.2004)

34 bln cubic meters annually may reach the Russian gas transit through Bulgaria, the Chief Manager of Gasexport Mr. Alexander Medvedeev announced. This means that 14 bln cubic meters for Turkey and 6 bln cubic meters should be reached. Italian Company ENI should decide by October 2005 whether it would start the project for delivery of liquid gas in the South Italy terminal. A transit for the Mediterranean country will pass through Bulgaria if the project is approved.
Source: Pari (14.06.2004)

Chimco JSC – Vratza owners are holding negotiations for the sale of their shares in the fertilizer factory, Valentin Dimitrov announced. He is the representative of A.V.S.T. Trading company that owns 51 per cent of the factory’s capital. The offshore company Jagoil Limited is the other owner of the enterprise. BGN 35 mln is Himko’s loss for the previous year. The factory keeps announcing losses this year as well.
Source: Monitor (14.06.2004)

Kremikovtzi’s debts as of March 2004 are in the amount of BGN 284.7 mln, according to the report, prepared by the temporary commission in parliament, which is investigating the labour conditions in the plant. The commission was established in the beginning of the year, following the breakdown in one of the plant’s blast furnaces. The report also reveales that the biggest liabilites of the plant are to NEC -–BGN 93.92 mln, followed by State Receivables Collection Agency – BGN 78 mln, NSSI – BGN 62 mln, Bulgargas – BGN 37 mln, and BDZ – BGN 5 mln. According to the report, these liabiliites should be extended in time in order to avoid the insolvency of the plant. Repayment agreements have been signed with Bulgargas, NSSI and NEC. Deputies will demand the Cabinet to make a full analysis of the company’s overall state within a period of 2 months, and then to give account of the specific measures that have been undertaken.
Source: Monitor (24.06.2004)

Among all state-owned enterprises, excluding Bulgartabac Holding, the biggest average monthly wages in Bulgaria are those in the energy sector. The leader in this respect is NPP Kozloduy, where the average salary is BGN 816, according to 2003 data, followed by the national gas monopolist Bulgargas – BGN 740. Non of these enterprises can be compared with Bulgartabac, where the average monthly wage is a little over BGN 2000.
Source: Sega (25.06.2004)

Another BGN 1.54 mln from the state budget will be allocated as subsidy of the metallurgical plant Kremikovtzi. The funds will be granted in the form of state aid, which the company is to receive starting this year and ending in the end of 2006. The money will be used for compensations and re-qualification of the workers, which will be dismissed in the current and the next two years, according to the report, prepared by the temporary commission in Parliament, associated in relation to the breakdown, which happened in the plant on January 10 this year. 3 people died and another 22 were injured in the accident. Besides this BGN 1.5 mln, the state has also poured in the plant another BGN 431.075 mln, which makes the total amount of the funds over BGN 432.5 mln. All the money have been granted in the form of state aid. The state obligation is envisaged in the Steel Industry Restructuring Programme, covering the period until 2007. The programme itself has been approved at a session of the Council of Ministers held in March this year. The document allows Kremikovtzi to reduce its workforce from 6709 people to 5780 people within a period of two year. This means that BGN 1.5 mln will be used for compensation and re-qualification of the dismissed 900 people. The Steel Industry Restructuring Programme was requested by the European Commission as a precondition for the closing of the Competition negotiations chapter. The document included a whole chapter, prepared in the form of a plan for the development and stabilization of the Kremikovtzi plant. Exactly in this plan, the option of cutting jobs in the plant was mentioned, with the aim of increasing the plant’s productivity. The granting of BGN 1.5 mln from the budget has been coordinated with the Competition Protection Commission. The antimonopoly watchdog ruled the state aid was in conformity to the law, therefore it was admissible. The European Commission also allowed the granting of the money, as long as they were to be used for the company’s stabilization. As early as in the middle of 1999, when the company was privatized by Daru Metals (currently Finmetals Holding), the state forgave BGN 393.556 mln of the plant’s debts. BGN 200 930 of them were debts under the Law on Settlement of Non-performing Debts, BGN 183 mln were debts to the state and municipal budgets, NEC and Bulgargas, and BGN 9 626 mln were from a granted, but non-sunk credit from the State Fund for Restructuring and Development. The debts were accumulated before the company was privatized, but were forgiven in the name of its stabilization. Following the privatization, another BGN 100 mln were poured in the plant through the state-owned enterprises NEC and Bulgargas. Both of them have receivables from the plants in this amount, which are due to be completely paid up in 2013. BGN 36 mln of them are state aid, according to the Competition Protection Commission, because the state is crediting the company. According to the report, the plant also has BGN 5.13 mln debts to the Bulgarian State Railways (BDZ) as of March 2004. It turned out Kremikovtzi had not completely paid up all its liabilities to the carrier. Europe will cut some of the financial aid it promised us earlier after we join EU in 2007, if Kremikovtzi does not manage to invest EUR 260 mln in modernization projects, Mr. Ramadan Atalai – Chairman of the Parliamentary Commission, said. Europe has promised to grant EUR 4.361 bln gratuitously over the period 2007-2010. Kremikovtzi’s obligations are included in the steel industry development programme. According to it, the company should invest EUR 256 mln over the period 2003-2007. The funds should be used for the launching of machines for continuous casting, modernization of one of the blast furnaces, and ecological projects. According to Mr. Atalay, if the plant fails to perform its obligations, EU will deduct the granted funds from the financial framework sum. “The other option is EU to request us to close some steel producing capacities,” Mr. Atalay commented. Europe has already asked us to close almost 1/3 of the production capacities in Kremikovtzi ( one blast furnace and some looms), explaining the company has received state aid in its privatization. Kremikovtzi refused to comment the report, arguing they had not received it as yet. Company officials said they had required it from the head of the Parliamentary Commission Mr. Ramadan Atalay yesterday.
Source: Monitor (29.06.2004)

Chimco insolvency proceedings stayed for September 21 in the Vratza regional court. NEC and Bulgargas claim over BGN 133 mln. Triple forensic-accounting experts’ report on the fertilizer plant was not ready, explained judge Penka Alexandrova.
Source: Standart (30.06.2004)

Kremikovtzi’s net debts, according to the company’s accounting balance sheet, are in the amount of BGN 476 mln. For comparison, when it was privatized back in 1999, its debts totaled BGN 648 mln. In 2003, Kremikovtzi’s liabilities to NSSI were settled. Their payment was rescheduled and is due over the next 36 months. The payment of the company’s debts to NEC and Bulgargas was rescheduled over the next 10 years. In 2003, the plant employed 7930 people, compared to 15 000 before the privatization deal. During the privatization, the average monthly wage in the enterprise was BGN 401, while now it is BGN 604. In 1999, the company’s incomes from sales were in the amount of BGN 639 249 mln, while in 2003 they reached BGN 680 mln.
Source: Trud (30.06.2004)

The gas field exploited by Petreco supplied the first 100 000 c.m. gas to Bulgargas. Fuel is expected to start running to foreign clients in a month. Petreco has invested about USD 50 mln. in drilling, a platform and a pipeline, which starts from the sea, goes under the beach and reaches a big station on dry land. Newly opened jobs are 100 but accompanying activities supplement up to 500. Extraction will satisfy about 10% of country's total needs. This is the first time a foreign investor supplies Bulgarian gas from the sea to domestic consumers.
Source: Cash (02.07.2004)

Gasprom offered Bulgargas SPJSC – Sofia to calculate the transit fines for natural gas transfer through Bulgaria in a market principle. Overgas Inc. JSC – Sofia, which is a shareholder in Gasprom, is only natural gas importer since 2003 when Topenergy JSC – Sofia dropped out of the delivery scheme. The transit negotiations are related to the memorandum signed by the Russian President Mr. Putin on his March 2003 visit.
Source: Dnevnik (02.07.2004)

The National Assembly, following discussions on the report, prepared by the Temporary Parliamentary Commission, investigating the safe and healthy labour conditions in Kremikovtzi JSC and the execution of the National Assembly’s decision dated March 29 2002, on the grounds of art. 86, par. 1 of the Constitution of the Republic of Bulgaria DECIDED: 1. Adopts the report, prepared by the Temporary Parliamentary Commission, investigating the safe and healthy labour conditions in Kremikovtzi JSC and the execution of the National Assembly’s decision dated March 29 2002, and finds urgent the adoption of all measures, suggested in the report. 2. Evaluates as non-satisfactory the work of Kremikovtzi JSC’s operative management regarding the creation of healthy and safe labour conditions, environment protection and fulfillment of the company’s obligations to its workers and employees under the Collective labour contract 3. Finds that the majority owner of 71 per cent of Kremikovtzi JSC’s capital – Finmetals Holding JSC, does not fulfill its obligations for the financial stabilization of the company, the reducing of Kremikovtzi’s debts to the state creditors – BDZ SP JSC, NEC SP JSC, Bulgargas SP JSC, NSSI and the investment obligations, stipulated in the privatization contract. 4. Evaluates as non-satisfactory the work of the Council of Ministers on the execution of the National Assembly’s decision dated March 29 2002, regarding the coordination of its policy between the Government and the producers and regarding the fulfillment of Bulgaria’s international commitments; regarding the relations between the state creditors; regarding the observing of the owner’s financial discipline; regarding the implementation of the commitments under the privatization contract and the provision of current control over the activities of Kremikovtzi JSC. Evaluates as non-satisfactory the work of the representatives of the state organs in Kremikovti JSC’s managing bodies, in protection of the interests of the state as a co-owner. Obliges the Council of Ministers, within a two-month period: - to examine and evaluate the state of Kremikovtzi JSC; - to undertake immediate measures for the collection of the state receivables from Kremikovtzi JSC; - to specify the measures and guarantees, providing the execution of the National Programme for the Restructuring and Development of Bulgaria’s Steel Industry by the year 2007 on the basis of joint work between Kremikovtzi JSC, Finmetals Holding JSC, the Ruling Committee and the Ministry of Finance as a monitoring organ; - to inform the National Assembly about the results. This decision has been adopted by the XXXIX National Assembly on June 30 2004 and has been sealed with the National Assembly’s official seal. Chairman of the National Assembly: Ognyan Gerdjikov.
Source: State Gazette (09.07.2004)

Selling off the assets of the fertilizer manufacturer Agrobiochim of Stara Zagora continues despite some problematic deals. On June 15 the trustees in bankruptcy Kiril Karagyozov and Dimiter Smilenov will offer for the 211th time in succession the assets of the fertilizer producer. They'll try to sell two plots of 1,371 sq. m and 2,461 sq. m at initial tender prices of BGN12,800 and BGN19,500 respectively. The candidate buyers could also bid for cupboards, pumps, fans, and other assets of the company, evaluated at a total of BGN169,300. A subway and two railroad lines, estimated at BGN60,300, will be also offered for sale on July 15. The trustees in bankruptcy have obviously picked mid-summer as an appropriate time for cashing Agrobiochim's assets, because in addition to the above-mentioned items, another group of articles, evaluated at BGN64,000-plus, will be put up for sale as well. Mr. Karagyozov and Mr. Smilenov are definitely not worried by an eventual lack of interest towards the company's assets. So far they have succeeded to satisfy claims for more than BGN10MN. A considerable part of that amount was due to employees, whose remuneration has been almost entirely paid off. All liabilities of the company are about BGN95MN. Bulgargas is its biggest creditor, with receivables of almost BGN60MN. But as loan has not been ensured Bulgargas is waiting its turn in the queue with the other creditors. It's not clear, however, when it will get it money, the more so that lawsuits have already been initiated for some of the deals, closed by the trustees in bankruptcy. It turned out that the selling of Agrobiochim's assets was not so problem-free. The most contested sale was effected in 2003 when the two trustees in bankruptcy sold two self-contained parts of the enterprise - the workshops for production of ammonium nitrate and nitric acid - against BGN4.5MN, ignoring an offer of almost BGN8MN. According to experts, their aggregate value is not less than BGN12MN. The assets were purchased by a consortium between Smart Chemicals and the Dutch company Yevometal Stainless processing. The higher bid was offered by IPM OOD, owned by Ivan Minev. The deal is being attacked by the prosecutors office, which wants to declare it null and void. The problem is that the deal includes 100 dca of land, that has been sold, and according to Bulgarian legislation foreigners are not allowed to buy land. Immediately after acquiring it, however, the Dutch transferred it to a Bulgarian company. Agrobiochim was declared insolvent in 2001. The enterprise was producing ammonium nitrate, but in 1999 it stopped operation. At that time the Privatisation Agency (PA) sold the bulk of its production assets as self-contained parts. Among them were: the workshop for dicalcium phosphate, the workshop for production and packing of foodstuffs, the manufacture of caprolactam, of technical phosphates, technical carbon dioxide, and gaseous oxygen and nitrogen.
Source: Banker (12.07.2004)

The Bulgarian Commission for Regulation of Communications (CRC) decided to issue a TETRA licence to the only candidate to have submitted an offer, Bulgaria's Pro Wave OOD, the company said. A co-owner in the company with 50% is Maxim Behar, owner of M3 Communications. The civilian TETRA network is envisaged to provide services to large corporate clients, which will reduce their communication expenditures. Currently only the ministry of interior has built a TETRA network, equipped by Nokia. The term of the licence is 15 years. The price of the document stands at BGN 199,800. Meanwhile the cabinet approved a strategy for development of 3G mobile communications, UMTS. According to the document, by September 30, 2004 the CRC will open a procedure to issue a 20-year UMTS license to two mobile operators.
Source: Pari (23.07.2004)

The Sofia city court initiated on Monday insolvency proceedings for Kremikovtzi on a petition filed by local company Stroykomplekt which is trying to collect 520,000 levs from the Sofia-based metallurgical plant. The news was confirmed for Dnevnik by Kremikovtzi supervisory board chairman Bozhko Bonev. The official rebutted claims that a temporary administrator is already in charge of the company and said an appeal against the insolvency motion will be submitted on July 28. Stroykomplekt, which is the first creditor to seek Kremikovtzi's insolvency, bought the 520,000 liability under a debt cession deal before the 1999 acquisition of the metals firm by Daru Metals. The debt was assigned to Stroykomplekt by a company that had supplied water pipes to Kremikovtzi. Since the debt transfer was priced at 1 lev, the management concluded that it was dealing with phantom supplies and refused to pay the debt, Bonev said. It is ridiculous to kick off an insolvency procedure over a liability worth only half a million levs when the assets of the company are valued at many millions, said Bonev. The temporary administrator manages a company undergoing insolvency proceedings until the end of the procedure. If the company is adjudicated bankrupt, a permanent administrator is appointed. Kremikovtzi's liabilities exceed 500 mln levs, found a parliamentary committee after scouring the books of the metallurgical plant for several months earlier this year. The Stroykomplekt petition could be joined by other disgruntled creditors. So far the government prevented major state-owned creditors like the National Electricity Transmission Company (NETC), Bulgargaz and BDZ from collecting forcefully their debts from Kremikovtzi, a company with some 7,000 workers. Kremikovtzi and NETC clinched a deal in 2003 to reschedule over a ten-year period a debt of 70 mln levs owed to the power utility. The rescheduled debt, however, represents only 31% of the overall amount owed to NETC. Under a similar agreement, Kremikovtzi rescheduled in 2003 a debt of 25 mln levs owed to gas supplier Bulgargaz. The metallurgical company also owes 4 mln levs to national railway carrier BDZ. No government official was willing to comment on Tuesday the launch of insolvency proceedings against Kremikovtzi. The towering red ink of the metallurgical plant has forced Finmetals Holding, which owes 71% of Kremikovtzi, to seek new partners. After futile negotiations with Italy's Gruppo Mercegaglia, Kremikovtzi said in April 2004 that India's Ispat was to conduct a due diligence and could sign an agreement for joint management.
Source: Dnevnik (28.07.2004)

Black Sea Technology Company (BSTC) launches natural gas supply in four towns in the Dobrudja region from the middle of August, the sales director of the Bulgarian company, Valentin Habarliev, said. This year BSTC will invest BGN 7.5 million in Shumen, Provadia, Dalgopol and Axakovo. In the beginning of 2004 BSTC acquired a 35-year licence for gas distribution in the Dobrudja and Mizia regions (northern Bulgaria). The first consumers in Axakovo and Shumen have to be plugged to the gas network by October 15, the deadline for the other two towns is November 15. Besides a gas distribution network, the company will also build automated stations for regulation of gas pressure. In early August BSTC will begin implementation of its investment programme in Dobrich, where it holds a 10-year gas distribution licence. The supplier will expand its network to 110 industrial and public and administrative clients and 188 household consumers. So far only 66 families have signed contracts and if no more clients turn up, BSTC's investment programme in Dobrich will drop to BGN 500,000. Currently BSTC services 265 household consumers, 91 public and administrative buildings and 27 industrial projects.
Source: Pari (29.07.2004)

Metal works Kremikovtzi’s entire accounting record is to be revised by inspectors. Sofia District Court will appoint them at the request of vice-prime minister Ms. Lidia Shuleva. The measure was taken because of the temporary parliamentary commission’s report on the labour safety and healthiness in Kremikovtzi. Financial minister Mr. Milen Velchev shall take immediate action for collecting state receivables from Kremikovtzi, says the government decision. The company owes BGN 100 mln to the National Social Security Institute, over USD 30 mln of defaults and interests on them under after-privatization commitments. Creditors of the works are also Bulgarian State Railways and Bulgargas.
Source: Sega (30.07.2004)

The average insurance income at the 20 most law-abiding companies in Bulgaria employing up to 15 people stands at BGN 1,018, first-half data of the National Social Security Institute show (NSSI). Such companies employ 273 people. The leader in the group is the embassy of Spain. Companies with staff of 15 to 50 people have a total of 804 employees. The average insurance income there is BGN 995. The employer paying the highest contributions for its employees is BORICA. Companies with 50 to 100 staff insure a total of 1,579 people with an average insurance income of BGN 902. Another 4,057 are employed in companies with staff ranging between 100 and 250, where the income is BGN 778. The biggest number of people, 51,560, are employed in enterprises with more than 250 workers. The average insurance income there is BGN 622.
Source: Pari (05.08.2004)

The average insurance income at the 20 most law-abiding companies in Bulgaria employing up to 15 people stands at BGN 1,018, first-half data of the National Social Security Institute show (NSSI). Such companies employ 273 people. The leader in the group is the embassy of Spain. Companies with staff of 15 to 50 people have a total of 804 employees. The average insurance income there is BGN 995. The employer paying the highest contributions for its employees is BORICA. Companies with 50 to 100 staff insure a total of 1,579 people with an average insurance income of BGN 902. Another 4,057 are employed in companies with staff ranging between 100 and 250, where the income is BGN 778. The biggest number of people, 51,560, are employed in enterprises with more than 250 workers. The average insurance income there is BGN 622.
Source: Pari (05.08.2004)

For the fifth time in a row, an auction for assets of embattled urea maker Chimco JSC, organised by the State Receivables Collection Agency (SRCA) failed to attract any bidders. The combined price tag of the assets, which include a crypton-xenon installation, is BGN 2.507 mln. SRCA is trying to enforce a debt of BGN 8 mln owed mainly to the National Social Security Institute, the tax administration and the courts. Chimco has been idle for two years but the management says it is preparing to restart the carbamide production.
Source: Dnevnik (10.08.2004)

The National Social Security Institute announced the top 20 most law-abiding employers with personnel of 50 up to 100 people for the first quarter of 2004. They insure totally 1579 people with an average insurance income of BGN 902: 1. Les Laboratoires Servier - Sofia 2. Association of Bulgarian Road Transport Enterprises - Sofia 3. Siemens - Sofia 4. Bulgargas - Vratza 5. Glaksosmitklajin Limited - Sofia 6. Daru Car - Sofia 7. Henkel-Bulgaria - Sofia 8. IBM-Bulgaria - Sofia 9. Wuerth-Bulgaria - Sofia 10. Aims Human Capital - Sofia 11. TM-Auto - Sofia 12. Information services – Plovdiv branch - Plovdiv 13. Encouragement bank - Sofia 14. SG Expressbank JSC – Transport branch - Varna 15. Berlin – Hemi AG - Sofia 16. SG Expressbank JSC – branch Varna - Varna 17. Embassy of the United Kingdom of Great Britain - Sofia 18. Sofia City Prosecution Office -Sofia 19. Foundation Catholic Relief Services (CRS) - Bulgaria - Sofia 20. Code Assistance SP LTD - Sofia
Source: Other (10.08.2004)

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 Nabucco project, aimed at bringing down natural gas from Western Europe through Turkey and Bulgaria, was approved by the Financial Supervision department of the Dutch company ABN AMRO Bank N.V. The team of the bank, which was selected as financial advisor, will provide support to the Nabucco consortium during the initial survey stage of the building of the project, estimated at some EUR 4.4 bln. The consortium unites gas companies from Bulgaria, Turkey, Romania, Austria, Hungary, and Serbia.
Source: Sega (20.08.2004)

On Thursday, the Government transferred the supervision of the debts of the metallurgical plant Kremikovtzi to the Managing Committee of the National Programme for the Restructuring and Development of Steel Industry, which will operate until the year 2007. Ministers closed the commission, coordinating the relations between Kremikovtzi and its state-owned creditors, which was associated in 2002, explaining it has run out of functions, because an agreement for settling of the financial problems between the debtor and its creditors (National Social Security Institute (NOI), Chief Tax Directorate, Customs Agency, Bulgargas, National Electricity Distribution Company (NEC), Bulgarian State Railways (BDZ), the ports in Bourgas and Lom, and Napoitelni Sistemi (Irrigation Systems), has been reached. From now on, the coordination of the actions and measures, related to Kremikovtzi’s debts, will be assigned to the National Programme for the Restructuring of Steel Industry. This programme is aimed at bringing Bulgarian metallurgy in compliance with EU production standards. The plant’s debts amount to some BG N500 mln, including debts to private suppliers, according to the report of the parliamentary commission, investigating the plant’s activity following the labour accident in January, in which three people were killed. According to labour union information, the plant’s debts for social insurance are in the amount of around BGN 100 mln. Half a year ago, Kremikovtzi and NOI adopted a sinking plan, according to which the plant had to remit BGN 5 mln a month. This plan was recently corrected. The plant’s BGN 70 mln debt to NEC was extended and is due payable over the next 10 years. Similar agreement was reached with Bulgargas. Recently, Kremikovtzi’s name made quite a stir again, after Sofia-based Stroycomplect addressed the Court, asking it to decalre Kremikovtzi in insolvency, because of a BGN 500 000 debt. The bankruptcy case will be heard in September. Other companies may join Stroycomplect’s claim as well.
Source: Dnevnik (20.08.2004)

The privatisation-bound companies in which the state holds a majority stake number 82. Pre-privatisation preparations have already been launched at these enterprises and the manner of their sell-off is being discussed. For another 200 the privatisation method has already been chosen. The number of companies that will be sold away, however, may grow if the ministries request from the privatisation agency to sell the companies that are pending liquidation.
Source: Dnevnik (23.08.2004)

Vratza District Court will hear today the lawsuit for claiming the Fertilizer Company Chimco JSC – Vratza in insolvency under the claims of National Electricity Transimission Company and Bulgargas SP JSC – Sofia for more than BGN 133 million. The case was put off on July 29 for the reason of the uncompleted triple court – accounting expert investigation of the fertilizer plant. The new Chimco case began on April 20 after the Supreme Court of Cassation returned the insolvency case to Vratza District Court for the second time.
Source: Monitor (21.09.2004)

European-American consortium along with two powerful Russia-based companies is to buy the Vratza-based factory Chimco, announced the chairman of the plant’s Managing Board Mr. Velislav Vuzev yesterday. According to him the negotiation are to be finalized soon. Meanwhile Chimco was given a postponement of another month for the insolvency case, filed by Bulgargas and National Electricity Distribution Company (NEC). The creditors’ claim for unpaid bills of gas and electricity is already topping BGN 160 million.
Source: 24 chasa (23.09.2004)

The Vratsa District Court is going to decide whether or not to initiate new insolvency proceedings for the Chimco fertilizer plant on October 19. The magistrates examined the results from the triple expertise of the economic situation of the combine on September 21. However, the expertise appeared incomplete and the experts were asked to make additional assessments. The parties in the case decided not to reveal information about its contents. The National Electricity Company (NEC) asked for declaring the Vratsa-based company bankrupt in November 2002. NEC's claims reached BGN33MN. The company was followed by Bulgargas which requested Chimco's insolvency, too. According to the state monopolist, the plant has accumulated its debt since 1996 as it failed to pay gas deliveries worth BGN70MN. According to Chimco's balance-sheet of the first half of 2004, its fixed assets total BGN225MN, of which machines and equipment are worth BGN175.8MN. They are down by nearly BGN40MN compared to the same period of 2003. The company's capital amounts to BGN13.6MN. The chemical combine reported a BGN112.6,000 profit for the first half of the year. However, the profit is mainly due to the sale of assets of the company. Three months earlier Chimco reported a loss amounting to BGN2.6MN, while uncovered prior losses reached BGN68MN. Chimco is owned by the off-shore AVST Trading company which holds 36.06% of its capital and Jagoil Limited which has a 35% stake. The rest of the shares are distributed among small shareholders.
Source: Banker (27.09.2004)

Within days, debt-throttled metallurgical plant Kremikovtzi JSC has managed to dodge one insolvency lawsuit only to stumble straight into a new one. The Sofia-based metals firm has worked out a deal with creditor Stroykomplekt after the latter filed an insolvency suit over an outstanding debt of BGN 520,000. Kremikovtzi has reportedly agreed to pay off half of the litigated amount if Stroykomplekt drops the lawsuit filed in July this year. But only a day after the court stayed proceedings in the Stroykomplekt case on September 23, another creditor of the metallurgical plant, Inzhtalant, filed a separate insolvency petition in a bid to collect a court-certified debt of BGN 400,000 from Kremikovtzi. Mr. Nikolay Batashki, the Inzhtalant lawyer, said he has alerted the Commission for the Protection of Competition about the rescheduled payment of some BGN 146 mln that Kremikovtzi owes the National Electricity Transmission Company (NETC), Bulgargas and the National Social Security Institute. The commission said on Monday it was not poised to act on his petition but Batashki said he would appeal before the Supreme Administrative Court. The anti-trust authority said in late 2003 that the rescheduling of Kremikovtzi's debts to state-owned creditors did not constitute state aid. The news of the Stroykomplekt insolvency suit prompted several creditors to join the legal action in an attempt to recover in excess of BGN 3 mln from Kremikovtzi. One of the litigants, the Pepo-Petar Rizov company, is now appealing the staying of the Stroykomplekt lawsuit. In 2003, Kremikovtzi clinched a deal to reschedule the payment of BGN 36 mln to gas supplier Bulgargas over a 10-year period while convincing NETC to consent to an identical repayment scheme for debts of BGN 76 mln. Two months ago, parliament urged the government to take measures to collect the BGN 146 mln that the plant owes the state. On September 8, the government instructed the ministers of economy and of finance to prepare a report with the exact debt figures and the schemes for their repayment. Meanwhile, Finmetals Holding, which owns 71 per cent of Kremikovtzi, is in talks to sell a majority stake in the metallurgical plant to India's Global Infrastructure Holdings Ltd.
Source: Dnevnik (28.09.2004)

Bulgargas suggests to increase the price of the natural gas by some 1.9 percent as of October 1 this year, this is read in a report to the State Commission for Energy Regulation. The elements that form the natural gas’ price on the entrance of the gas conducting network have been changed for the past 3 months. Black fuel and gas oil’s prices have increased between 15,2 and 23,8 percent, this is written in the reasons for the change. Meanwhile the currency rate of the BGN reported a 1.2- percent decrease against the USD.
Source: Novinar (28.09.2004)

The state may take the Sofia-based Heat Supply if an international company’s manager is not chosen in October, the Minister of Energy Mr. Milko Kovachev warned. He is to demand on a state’s share increase that currently is 42 percent. Stolichna (Sofia) Municipality holds the rest 58 percent. According to Mr. Kovachev one of the ways for state participation’s increase is through sinking a part of the Heat Supply Sofia’s debts to Bulgargas.
Source: Capital (04.10.2004)

We are launching a procedure to select a consultant for the privatisation of Bulgargas EAD, Bulgarian minister of energy Milko Kovachev told journalists on Saturday. The consultant is to develop a programme for restructuring of the gas company and indicate appropriate methods for its sale, the minister added. Besides, it is high time the state returned the amounts attained from transit fees for transportation of natural gas to the company, the minister believes. Currently the state budget acquires the full amount of fees, totalling BGN 50 million annually. According to Kovachev at least a portion of the fees must be alloted to the company responsible for transportation. At the moment gas consumption in Bulgaria is on the rise, and the quantities transported to Turkey, Greece and Macedonia are increasing as well. Additionally, a project to install gas pipelines to Serbia and Montenegro is underway.
Source: Pari (18.10.2004)

The energy ministry has once again proposed to the finance ministry to allow Bulgargaz, the nation's gas supplier, to pocket 20% of fees charged from Gazprom for the transmission of Russian gas via Bulgarian territory. Bulgargaz currently pays the fee revenue, which topped 140 mln levs in 2002 and 90 mln levs in 2003, into the state budget after deducting investment costs. If the finance ministry consents to the proposal, retabled several time in the past couple of years, state-owned Bulgargaz will be transformed into a commercial corporation and will be liable only for corporate income tax. The European Commission is expected to ok soon a consultant for a 1 mln euro Phare-funded strategy for the privatisation of the gas supplier.
Source: Dnevnik (18.10.2004)

Chimco Vratza has a new owner, which holds 71 per cent of the company’s stock. This is the US investment fund, which is related to the chemical and energy industry. According to the new chair of the company’s Supervisory Board Mr. Nikolay Velkov, ammonia and carbamide production in Chimco will be restored by the end of this year. The new owners intend to invest more than USD 40 mln in the company’s technical modernization.
Source: Darik Radio (19.10.2004)

Gazprom is interested in buying Sofia municipality’s stake in Heat Supply-Sofia, became clear yesterday after the meeting between Russia's minister of energy Mr. Victor Hristenko and Sofia's mayor Mr. Stefan Sofiyanski. During the meeting, Mr. Hristenko asked whether the municipality was to sell its 58-percent stake in the company. Mr. Hristenko is accompanying Russia's prime minister Mr. Mihail Fradkov on his 2-day visit in Bulgaria.
Source: Novinar (20.10.2004)

Italy’s Gruppo Sicieta Gas Rimini, Construzionni Dondi, and Enel, Austria’s EVN, which recently bought the electricity distribution companies in Stara Zagora and Plovdiv, and Overgas Inc., have submitted offers to receive gas distribution licenses for the Trakia region, State Energy Regulation Commission announced. The deadline for submission of offers expired Monday. Within three months, the regulation commission is due to choose the winner in the competition.
Source: Dnevnik (21.10.2004)

Bulgaria’s 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)

Natural gas consumption has dropped with 4.5 per cent as of the end of September, compared with the same period in 2003, due to lower consumption by heat distribution companies. Nevertheless, local thermal power plants remain the biggest consumers of the raw material, accounting for 36.5 per cent of total consumption. They are followed by the chemical and metallurgical industries.
Source: Standart (26.10.2004)

Top 50 of the most loyal employers with a staff from 100 to 250 people insuring a total of 72 056 people, and with an average insurance income of BGN 670 for the period January – August 2004 ¹ Name Town 1. Bulgargas Varna 2. Prosecution of the Republic of Bulgaria – Prosecutor-general Sofia 3. Tax Administration Sofia 4. American University in Bulgaria Association Blagoevgrad 5. Corporate Commercial Bank Sofia 6. Bulgargas Sofia 7. Sap Labs Bulgaria Sofia 8. Unionbank CB Sofia 9. Automotor Corporation Sofia 10. Municipal Bank Sofia 11. Sofia Hotel Balkan Sofia 12. Commission for Regulation of Communications Sofia 13. Siemens Information and Communication Sofia 14. Polichrom POAP Sofia 15. DHL International-Bulgaria Sofia 16. Festo Production Sofia 17. Litasco Bulgaria Sofia 18. Eurobank Sofia 19. Financial Supervision Commission Sofia 20. Privatization Agency Sofia 21. Supreme Administrative Court Sofia 22. BNB Printing Works Sofia 23. Regional Tax Directorate Dobrich 24. ING Bank Bulgaria. - Sofia branch Sofia 25. Administartion of the President of the Republic of Bulgaria Sofia 26. Actavis Sofia 27. National Arts Academy Sofia 28. Sofia Regional Prosecution Sofia 29. Curtis-Balkan Sofia 30. Intersnack Bulgaria Sofia 31. Customs - Varna Varna 32. Bank DSK SPJSC – Varna branch Varna 33. BNP PARIBAS /Bulgaria/ Sofia 34. Regional Tax Directorate Shoumen 35. Allianz Bulgaria CB Sofia 36. Regional Tax Directorate – Big Taxpayers - ÑÎÔÈß Sofia 37. Regional Tax Directorate Sliven 38. UNIBANK Sofia 39. Petrol holding Varna 40. Hebrosbank JSC National Canter branch Sofia 41. Melexis Bulgaria Sofia 42. Ministry of Energy and Energy Resources Sofia 43. Regional Tax Directorate Vratza 44. Piraeus Bank JSC - Sofia branch Sofia 45. Regional Court Plovdiv 46. Bulgarian-American Credit Bank Sofia 47. Provadsol Provadia 48. District Court Plovdiv 49. Ministry of Labour and Social Policy Sofia 50. Veterinary Medical School Stara Zagora The data is provided by the personal PC of the National Social Security Institute to October 8, 2004
Source: Other (26.10.2004)

Chimco’s new owner – a US Investment fund, is planning to resume the production in the fertilizer plant by the end of this year, the company’s CEO Mr. Andrei Semerdjiev announced. Currently, technical and economic studies are being conducted at Chimco, as well as schedules for putting into operation 25 per cent of the production capacities in December. Negotiations for supply of natural gas are being held with Bulgargas, the National Electricity Transmission Company (NEC), and the thermal power plant, located on the territory of Chimco
Source: Sega (27.10.2004)

The auction for the sale of Chimco JSC – Vratza’s assets was put off for a fourth time in a row. The State Receivables Collection Agency /SRCA/ temporary postponed the public bidding appointed for today. The reason is that the plant’s creditors - National Social Security Institute and General Tax Directorate, have sent a claim to the Agency insisting on the sale’s deferring. Chimco’s property should have been sold for BGN 3.6 mln on the auction put off. The case for claiming Chimco insolvency is appointed for November 11 at the demand of National Electricity Distribution Company and Bulgargas SPJSC – Sofia.
Source: Sega (29.10.2004)

Local construction company Ingtalant Ltd. has backed out of the two insolvency cases it filed against Sofia-based Kramikovtzi in a bid to recover 400,000 levs from the debt-throttled steel plant. The two sides have settled out of court. A similar agreement convinced another Kremikovtzi creditor, Stroykomplekt, to drop in early September its own insolvency case against the metallurgical company. Kremikovtzi still faces two cases filed by creditors at the Sofia city court.
Source: Dnevnik (01.11.2004)

The selection of manager for district heating company Toplofikacia Sofia JSC could to drag on for another couple of months, the three applicants for the position said after an interview with the working group in charge of the selection early this week. The draft management contract will be amended to describe the obligations of the manager, the ways in which his performance will be assessed and the possible liability clauses. The general opinion is that, in its current version, the content of the document is more akin to that of a consultancy contract. The award of the consultancy contract to a private investor, which was supposed to happen in 2003, will clear the way for the disbursement of EBRD and World Bank loans for the rehabilitation of the heating utility with an estimated cost of 114 mln euro. Germany's MVV, Dalkia of France and the RWE Industries/Stadtwerke Leipziger tie-in have already passed the pre-qualification round for the management contract held in 2003 and will be invited to submit bids. One of the contentious issue in the draft contract is why the heating utility has to pay an annual fee plus a share of the profit to the manager, who has no say in the company's investment policy, said the working group's manager Plamen Iliev. The document's philosophy should be revised, he added. In his words, in its current version the document does not envisage sanctions for the future manager. The obligations of the future manager, as described in the draft, prevail over his rights, said NDSV adviser Atanas Tassev. This is the common stand of both the candidates and the municipality and the energy ministry, he explained. The energy ministry commented that a meeting with representatives of the municipality will be held to clarify the sides' position on the document. The state owns 42% of the heating utility. Some time ago the state said the municipality should name a consultant as otherwise the state would increase its stake in the company and cover the BGN 60 mln debts to gas supplier Bulgargas. Toplofikacia Sofia provides heat and hot water to over 800,000 customers that account for 65% of district heat consumption in Bulgaria.
Source: Dnevnik (05.11.2004)

National Social Security Institute announced the top 50 most loyal employers wit ha personnel of 50 to 100 people for the first nine months of 2004, insuring a total of 4139 workers with an average insurance income of BGN 678: 5. Daru Car - Sofia 8. TM Auto, Sofia 9. Bimak - Chelopech 12. JSC Information services – office Plovdiv – Plovdiv 16. Kammarton Bulgaria - Sofia 20 Electrorazpredelenie - Varna 22. Lindner Bulgaria - Sofia 24. Heat Supply-Plovdiv 26. SIAD BULGARIA - SOFIA 27 Shell Gas Bulgaria - Sofia 45. Euratech Ltd., Sofia 48. JSC Information services – office Varna – Varna 50. Electricity Distribution Company Plovdiv - Karlovo region
Source: Capital market (08.11.2004)

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)

Bulgargaz, the state-owned company in charge of the import and supply, transmission, storage and transit of natural gas, will create a wholly-owned subsidiary, Bulgartel, to operate the fiber-optic network of the parent company, Bulgarian energy minister Ilko Yotsev said on Wednesday. Bulgargaz, which was licensed last year to provide datacasting services, has a 680 km fiber-optic network reaching the borders with Romania, Greece and Turkey. Bulgarian telecom operators Neterra and Orbitel and cable operator CabelTEL are in talks to hire lines from Bulgargaz. Bulgargaz and CabelTEL, co-owned by Bulgarian and U.S. investors, signed an agreement six months ago for a partnership in the provision of telecom services and for the link-up of their networks. BUlgargaz is pursuing a similar connectivity deal with gas distributor Overgas Inc.. Vestitel BG, a subsidiary of Overgas, said in mid-October it will invest BGN 4 mln in the installation of a fiber-optic pipe linking Sofia and the town of Kulata on the Bulgarian-Greek border. The 223 km cable will have 72 fibers, including 12 broadband channels, and will be installed by April 2005. At the moment, local ISPs buy international connectivity mainly from BTC Net, Neterra and PanTel.
Source: Dnevnik (11.11.2004)

Vratza-based fertilizer plant Chimco is insolvent, the court and accounting expertise for the economic state of the company concluded. Chimco’s debts are in the amount of over BGN 150 mln, and its assets are three times smaller – some BGN 43 mln, Mr. Marko Pelov announced. He is a court expert in the company’s insolvency case. Another two experts have come to the same conclusion as him.
Source: Shans Express Vratza (12.11.2004)

Telecommunications company CableTel and the Greek sector company OTE signed a contract for mutual connectivity of their networks, it emerged during the presentation of CableTel's new service Triple Play. At present, there is already an international connection between the the two networks, the capacity increase is forthcoming. CableTel is Bulgaria's largest cable operator that has been active for ten years already and has a coverage in 20 towns. In 2003 the company started construction of a optic cable ring around Sofia to use it for high-speed data transfer. The total investments for a period of two years are projected to come to EUR 100 million. In a fortnight's time the company is to sign an agreement for mutual connectivity with the Bulgarian telecommunications Company (BTC) and will continue its efforts to secure mutual connectivity with the telecom companies of the Balkan region. The company's Triple Play was introduced at the beginning of November this year. Under this name the company offers in fact cable TV, Internet and phone services.
Source: Pari (19.11.2004)

Bulgaria's Privatisation Agency (PA) sees an opportunity to drop in 2005 companies like Bulgargaz, Technoexportstroy, Metalni Konstrukcii Holding and Industrial Construction Holding from the non-privatisation list of the Privatisation Act. The denationalisation of enterprises defined in the Privatisation Act as having national security relevance will get underway in earnest in 2005. That list of security-sensitive companies is dominated by the defence industry. The PA action plan for 2005 envisages the divestiture of 46 equity packages of companies majority-owned by the state, 20 transactions with self-contained parts and 167 transactions with minority stakes. The sell-off regulator expects to wrap up the privatisation of the thermal power plants in Bobov Dol, Varna and Rousse in the first half of 2005 and to continue readying for privatisation the district heating companies based in Plovdiv, Shumen, Varna and Pernik. National flag-carrier Bulgaria Air, the Bulgarian River Shipping Corporation and national maritime fleet NMB are also expected to go private next year. After the privatisation of the cigarette factories and processing units of tobacco monopoly Bulgartabac, the PA could move to divest the holding structure as well in 2005. The PA expects to contract 450 mln levs in cash privatisation proceeds next year and another 300 mln levs in non-cash payment instruments.
Source: Dnevnik (23.11.2004)

Bulgargas reported revenues to the amount of BGN 672 846 in the first nine months of 2004. The company’s tangible assets total BGN 1 119 552. The net profit for the period under review reached BGN 82 813. Local natural gas supplies have increased with 14 per cent over the period January-September 2004 y/y, the company reported. However, consumption has dropped with 4.5 per cent.
Source: Monitor (23.11.2004)

Next week, Sofia City Court will register Bulgargas subsidiary to deal in telecommunication sphere. It is titled Bulgartel, the Bulgargas CEO Mr. Kiril Gegov announced. Bulgartel owns 650-km optic network that will go over the national gas-supply network and will connect the Romanian and Turkish frontier. The optic network is of 24 channels, as Bulgargas needs 2 channels for it own need. This will be the second powerful operator after the Bulgarian Telecommunication Company, as no other company in Bulgaria has a similar network.
Source: Sega (25.11.2004)

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)

Bulgargas may stop the deliveries to Heat Supply-Burgas, and 80 000 households in the sea-coastal city are facing the threat of leaving without heat. The problem is the company’s debts to the fuel supplier amounted to BGN 4 100 000. The CEO of Heat Supply-Burgas Mr. Petar Rusev stated yesterday that the enterprise has already breached the agreement for rescheduled payment. The Gas Company managed by Mr. Kiril Gegov has warned that the company is to stop at any moment the supply of the natural fuel.
Source: Monitor (02.12.2004)

By 2005 Bulgargas, the state-owned company in charge of the import and supply, transmission, storage and transit of natural gas, will have a new structure with more power concentrated in the hands of a CEO and his several deputies, the energy ministry reported. At present the company is run jointly by a CEO and a managerial agent. The latter's position however will be scrapped. The Bulgargas board of directors adopted a decision to this end last week. It is still unclear of the managerial agent, Iliya Ivanov, will stay with the company. The restructuring program will probably merge the company's economic and financial operations in one directorate, as will the legal and the administrative management. The telecommunication operations of Bulgargas's fiber optic units will be transferred to a new entity, Bulgartel. The energy ministry explained that the changes were prompted by provisions in the energy legislation under which gas companies should spin off their natgas supply operations after Bulgaria joins the EU, which is expected to happen in 2007. Also upon its EU accession Bulgaria will be required to import gas from EU members exclusively and the nation's main supplier should control 75% of the market. Bulgargas has signed a long-term contract with Russian gas giant Gazprom which expires in 2008. The company is also working on the NABUCCO project for alternative supplies of natgas from the Caspian basin to Central and Western Europe. A week ago the Privatisation Agency proposed that Bulgargas is removed from the list of state-owned companies whose sale is vetoed. Energy minister Milko Kovachev, however, said he was opposed to the idea.
Source: Dnevnik (07.12.2004)

Vratza District Court declared Chimco unsound and started an insolvency procedure. The decision is under the petitions of the biggest Chimco’s creditors – Bulgargas and National Electricity Distribution Company that the company owes a total of BGN 133 mln to. According to the triple accountant expertise Chimco’s debts are over BGN 150 mln, and the assets are BGN 43 mln. The temporary syndic Mr. Boris Borisov will manage the company until December 21 when the creditors will have to elect a constant one.
Source: Sega (08.12.2004)

US Horizon Energy will sign a five-year contract for sale of electricity generated at the Sofia heating utility to Bulgaria's National Electric Company (NEK). The US company has pledged to invest USD 100 million in the utility to build a co-generating facility for combined production of heating and electricity. The capacity of the plant after the project is completed will be 100 mW. However, the sales agreement reached concerns 50 mW at preferential prices of BGN 80 per mWh. Horizon hopes we will reach an acceptable agreement for sale of the remaining quantity at market prices, a company official said.
Source: Pari (09.12.2004)

The heating utility in Lovech will have to be sold for BGN 1 following another unsuccessful attempt to privatize the company, according to the company’s Manager Ms. Margarita Kamenova. She commented the most appropriate price which would attract investors would be to pay the debts of the indebted company in the amount ofBGN 350 000. Instead, the price fixed by PA in the first of the auctions was BGN 1.2 mln. In the second auction, held in the end of November, the only interested candidate was Elite Group 2003 – Sofia, but it did not submit an offer. The heating season may fail, because the company has accumulated debts to Bulgargas.
Source: Sega (09.12.2004)

A subsidiary of Italy’s Indagro-Geneva, which is among the world’s top five fertilizer producers and distributors, has rented the production capacities of the Vratza-based fertilizer plant Chimco for a period of one year. This was announced by the newly appointed CEO of the company Mr. Vladimir Nenchev. The contract between Vratza District Court, the new provisional syndic of the company Mr. Boris Borisov and Indagro-Bulgaria, was signed yesterday.
Source: Sega (10.12.2004)

Sofia City Court has registered changes in the company case ¹ 1371/90 for Bulgargaz SPJSC - Sofia with municipal property: registers new company’s statute, approved with a decision ¹ State gazette-136 from November 4, 2003 by the Minister of energy and energy resources.
Source: State Gazette (14.12.2004)

Representatives of IBE Trade Crop. of the U.S., one of the companies seeking to be recognised as the rightful owner of Vratsa-based fertiliser company Chimco, told a news conference on Tuesday the company is ready to reboot the idled Bulgarian plant and to start negotiations with the main creditors on the rescheduling of Chimco's debts and the staying of insolvency proceedings. The investment that Chimco needs to ingest could come either from IBE Trade or from its partners, the company reps said, citing no timetable for their recovery plan. IBE Trade's future actions depend on the outcome from a case filed before Bulgaria's Supreme Court of Cassation in an attempt to recover a 71% stake in Chimco. The development of the Chimco case is followed closely overseas as suggested by a bill moved to Congress which conditions United States military co-operation with the government of Bulgaria within the territory of Bulgaria on evidence that U.S.citizens are afforded full due process of law. The bill states that the U.S. Secretary of Defence may not enter into any contract or other agreement with the government of Bulgaria regarding United States military co-operation with the government of Bulgaria within the territory of Bulgaria, including contracts or agreements for joint training activities or the construction of United States military facilities, unless the Secretary certifies to Congress, after consultation with the Secretary of State, that United States citizens and corporations are afforded full due process of law in Bulgaria, which would be evidenced at least in part by the full and fair resolution of the claims of IBE Trade Corporation, a United States corporation, for the wrongful conversion of its shares of stock of Chimco consistent with the decisions of the Supreme Court of the State of New York in IBE Trade Corp v. Iuori P. Litvinenko. The court convicted Litvinenko of wrongful conversion of IBE Trade assets and restored to the plaintiff ownership over Chimco in 2001. It was announced in October that a U.S. fund will acquire 70% of Chimco after buying its Cyprus-based owners A.V.S.T. Trading Ltd. and Jagwele Inc. The IBE Trade lawyers said on Tuesday they were not familiar with the circumstances of said transaction. After the Vratsa district court initiated insolvency proceedings against Chimco in early December, it emerged that a subsidiary of Italy's Indagro SA had hired the assets of the plant for one year against a monthly lease of 100,000 levs.
Source: Dnevnik (15.12.2004)

Southwestern Bulgaria will be gas supplied directly from the transitional gas conduct to Greece. This opportunity springs out of the contract signed between Bulgargaz and the Rusia-based Gazexport, that has a deadline in the end of 2010.
Source: Standart (22.12.2004)

The natural gas quantities transited through Bulgaria to Greece will grow by 50 per cent for the period 2005-2010. This is stipulated in the yesterday-signed contract between Gazexpport and Bulgargaz, the local company announced. Thus the full capacity of the transit gas conduct and revenues increase for the state budget and Bulgargaz. Currently the company transits 60 per cent of the natural gas used in Greece.
Source: Sega (22.12.2004)

The company is registered as a big tax-payer in the Tax administration.
Source: Other (01.01.2005)

The amount of the natural gas transferred through southwestern Bulgaria and destined to Greece will be increased with 50 per cent over the period 2005-2010 as of the beginning of January 2005. The managements of Gazexport and Bulgargaz have signed the contract stipulating these intentions. Thus both companies will negotiate for the construction of gas-measuring stations near the towns of Samokov, Kjustendil, Dupnitza, Blagoevgrad, Simitly /Bansko/, Snadanski and Petrich.
Source: Struma - Blagoevgrad (03.01.2005)

Varnagas JSC, co-owned by Overgas Inc. and the Varna municipality (34%), will spend 5.3 mln levs to install 46,100 m of gas mains and increase its household customers to 3,000 and the number of serviced public buildings to 94, the company's managerial agent Ognyan Spasov said. Varnagas, the holder of a 10-year gas distribution licence, estimates it will invest 30 mln euro in the gasification of the coastal city by '13, deploying a 309 km gas network and targeting 40,000 potential household customers and some 30 industrial clients. Varnagas will kick off the gasification of the nearby Zlatni Pyasatsi resort in '06, a year later than that of adjacent SS Konstatin&Elena resort.
Source: Dnevnik (24.01.2005)

The metallurgy plant Kremikovtzi reported a net profit of BGN 7.5 mln for the third quarter of 2004. This emerged from the company’s financial report that was published at last at the web site of the Stock Exchange. It also shows that the company’s long-term liabilities have increased, reaching some BGN 325 mln. Three months earlier they were BGN 290 mln. The short-term credits show an opposite trend. They have decreased from BGN 310 mln to BGN 284 mln. The biggest plant’s creditors are the state-owned companies National Electricity Distribution Company, Bulgargaz, and Bulgarian State Railways, but they have not launched court actions against the plant. Few months ago the Kremikovtzi’s lawyer Mr. Batashki asked the Commission on Protection of Competition to reschedule the debts of BGN 146 mln that the plant owes to National Electricity Distribution Company, Bulgargaz and the National Social Security Institute (NSSI). The short-term company’s assets have grown during the period, but the balance-sheet value of the long-term assets has gone down by some BGN 40 mln. The most notable decrease is the one in the Machinery and Equipment column. The amount of these assets is BGN 183 mln. Trade credits granted to another companies have been increasing, which makes Kremikovtzi dependent on the financial state of its clients. As a whole, the spendings for the last quarter posted a growth of BGN 26 mln, as this result is mainly due to the amounts spent for operative activity. The positive item is that in the period to September 2004 the total volume of the Kremikovtzi’s incomes from the core activity have grown rapidly compared to the relevant spendings. The sales revenues have increased by BGN 26 mln, reaching BGN 732 mln. Kremikovtzi’s obligations to the state budget are slightly over BGN 20 mln. The wages unpaid and the outstanding obligations to the staff total to over BGN 8.5 mln. The India-based Global Infrastructure Holdings, controlled by the Mittal family and holding the metallurgy giant Ispat, showed in 2004 interest in buying the plant. The holding entirely deals in the company’s investment operations abroad and holds 6 per cent of Ispat industries. The buyer is in talks with the current owner Finmetals Holding for purchasing the majority stake of the company. Since March, the owner actively negotiates with four foreign companies, which have declared interest in investing in Kremikovtzi. The last changes in the company’s management were made in August, when two Indians, representatives of Ispat Industries, entered the Board of Directors. The majority owner Finmetals Holding expected to draw foreign investors in the management by the end of the year, but yet there was no deal. The company Deloitte & Touche was re-elected for company’s auditor in 2005 at the Extraordinary General Meeting.
Source: Dnevnik (25.01.2005)

Bulgargaz, the state-owned company in charge of the import and supply, transmission, storage and transit of natural gas, said accounting profit increased by BGN 32 mln to BGN 160 mln in 2004 while operating income rose BGN 77 mln to BGN 995 mln. Domestic gas consumption fell 10 per cent to 2.96 bln cu m last year, Bulgargaz said. Gas transit to Greece is seen at 2.5 bln cu m in 2005 and at 3 bln cu m annually in 2007-2010. The company transited 11.2 bln cu m of gas to Turkey in 2004, slightly below the maximum capacity of 14 bln cu m.
Source: Dnevnik (27.01.2005)

Today Bulgargaz’s telecommunication company Bulgartel will sign a contract with Turkey-based Aisel for the building of a connection between their networks, the head of Bulgargaz’s Board of Directors Mr. Milen Chakarov announced. Aisel is the telecommunication company of the Turkish Koc Holding, which two years ago showed interest in buying 65 per cent of BTC. The contract aims at building a 35-km connection between the optic networks of Bulgratel and Koc holding, that should be built in Turkey. This would allow phone and Internet traffic from Turkey to Romania and Western Europe passing through Bulgaria.
Source: Sega (28.01.2005)

The state-owned enterprises will have to allot 50 per cent of their profit to the state until May 31. This is written in a Government’s enactment for the budget 2005 implementation, promulgated in the State Gazette. The joint stock companies will distribute the dividend after allotting the 10-per cent payment in the Reserves fund, in compliance with the Commercial Act. Each quarter, Bulgargaz will have to pay in the budget the payments due from the natural gas sale, supplied against stake participation under the Yamburg agreement.
Source: Dnevnik (31.01.2005)

Local natural gas prices to be slightly reduced backdate as of January 1 2005. This proposal, made by Bulgargas will be considered by Bulgaria’s State Energy Regulation Commission tomorrow. The price cut should come as a result of the change in one of the parameters in the formula, used to calculate the price of gas sold by Bulgargas – the circulating capital. Therefore, the gas company suggests the transmission price to be reduced from BGN 23.10/1000 c.m. to BGN 21, e.g. with 9.1 per cent, while storage price to go down from BGN 2.67 to BGN .49/1000 c.m., or with 6.8 per cent.
Source: Sega (03.02.2005)

The construction of a replacement lignite-fired capacity on the site of the Maritsa Iztok 1 thermal power plant (TPP) and the completion of the Belene nuclear power plant (NPP) will be the two biggest investment projects in Bulgaria's power industry until 2006, says an investment overview prepared by the energy ministry. The cost estimates for the two projects bandied around by government officials have increased steadily during the past couple of months. The initial price tag for the Belene NPP was 1-2 bln levs but on Thursday the figure cited in the overview had somehow soared to over 4 bln levs. The government is likely to select at its next meeting the nuclear technology that will be supplied to the Belene site and to give the go-ahead to the project in principle. The facility should be operational by 2011. The construction of the replacement facility on the Maritsa Iztok 1 site will cost 1.9 bln levs, says the government overview. The facility is due for delivery by 2008. The document also predicts that the future buyers of the TPPs in Varna, Rousse and Bobov Dol will chin in 1.3 bln levs for eco improvements. Other ongoing big-ticket projects in the power industry include the construction of the Tsankov Kamak hydro complex, the rehabilitation of TPP Maritsa Iztok 3 and the small units of TPP Maritsa Iztok 2, the installation of desulphurisation devices in Maritsa Iztok, the modernisation of the district heating utilised in Sofia and Pernik and the upgrade of the national electricity transmission grid. The cost of the projects in progress adds up to 3.7 bln levs. Bulgaria's power industry absorbed investment for 960 mln levs last year with 43% of the resource provided by the energy companies themselves. Five power projects have been granted state guarantees, the document says but does not specify if the Belene NPP will enjoy similar treatment.
Source: Dnevnik (04.02.2005)

NSSI announced the top 20 most loyal employers with a personnel of 50 to 100 people for 2004, insuring a total of 4032 men with an average insuring income of BGN 835. The company is included in the list. 27 JSC Information service – Plovdiv office – Plovdiv
Source: Other (08.02.2005)

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 250 to 500 people for 2004, insuring a total of 20 300 men with an average insuring income of BGN 627. The company is included in the list. 16 Information services JSC - Sofia
Source: Other (08.02.2005)

The natural gas is going cheaper with less than 1 per cent as of March 1, State Commission for Energy Regulation announced. In stead of BGN 229.65 1000 cubic meters will cost BGN 228.38. When Bulgargaz sell the gas to gas distribution networks the price will be BGN 236.10 in stead of BGN 237.37. The transport price will also go slightly down – from BGN 23.10 to BGN 19.73.
Source: Dnevnik (15.02.2005)

Indagro Bulgaria said on Thursday, February 17, it is in talks with gas supplier Bulgargaz to settle the outstanding payments of Vratza-based urea maker Chimco, Leonid Berenbaum, co-manager of Indagro Bulgaria, said. Indagro Bulgaria, itself a unit of the Geneva-based subsidiary of Italy's Indagro, leased the assets of the idled fertilizer plant three months ago against a monthly rent of BGN 100,000. The company plans to bring the plant back to full production capacity over the next three years. Indagro has so far invested USD 1.5 mln in the company, Berenbaum said. Chimco's outstanding payments to Bulgargaz, national electricity utility NETC, the Bulgarian state and other creditors are estimated at BGN 160 mln, Berenbaum said. As Indagro was signing on the lease, an insolvency procedure was launched against Chimco. In addition, IBE Trade Crop. of the U.S. has stepped up the legal efforts to regain control over the company. It has filed a case before Bulgaria's Supreme Court of Cassation in an attempt to recover a 71% stake in Chimco. The litigation involves Chimco's former managers and IBE Trade and has no bearing on Indagro's plans, Berenbaum said. The efforts to unravel the Chimco ownership imbroglio have been just as unsuccessful as those to reboot the company over the past couple of years. According to one story, U.S. company IBE Trans brought 57% of Chimco, paying with a loan drawn by Cyprus-registered A.V.S.T. Trading. The Chimco shares were furnished as loan security. Meanwhile, then IBE Trans president Yurii Litvinenko and IBE Trade started to contest in court the ownership of IBE Trans. Facing a default on its loan to IBE Trans, A.V.S.T. Trading takes the debtor to court in Bulgaria and is awarded ownership of the collaterised Chimco equity.
Source: Dnevnik (18.02.2005)

Russian energy giant RAO - United Energy System bought a 33.4-per cent share in Chimco - Vratsa. Thus, the subsidiary of the Russian giant Inter RAO Bulgaria JSC becomes the majority holder of the local mineral fertilizer producer. The company was chosen to chair the Board of Directors of the Vratsa-based plant. The new shareholder declared its intention to conclude agreements with the plant's creditors and restore production. The debts of Chimco as of June 30, 2004 amounted to BGN 145 million, the major creditors being the National Electricity Transmission Company (NEC) and Bulgargas.
Source: Standart (22.02.2005)

Bulgargaz will have new chair of the Board of Directors, the energy ministry announced. In the end of the last week minister Milko Kovachev dismissed the former chairman Mr. Milen Chakarov and appointed the head of juristic directorate the Mr. Julian Zhelyazkov for member of the board. The changes are forced by the need of better coordination in the company’s activity and its oncoming restructure, the minister commented. According to one of the versions floating the change is related to the government’s intention to transfer Bulgargaz to the ministry of economy.
Source: Dnevnik (22.02.2005)

Sofia City Court registered the following changes for Bulgargaz SPJSC - Sofia: Mr. Milen Ivanov Chakarov was registered as chairman of the Board of Directors.
Source: State Gazette (08.03.2005)

The former deputy district governor of Vratza- Mr. Rumen Kostov, is the new production director of Indagro-Bulgaria, Nov Zov newspaper reported. Mr. Kostov was an executive director of Chimco JSC – Vratza in the period from 1992 to 1993.
Source: Dnevnik (09.03.2005)

Chimco’s new majority shareholder – INTER RAO Bulgaria, reached an agreement with Bulgargas to immediately resume the operations in the plant and sink its debts, the Russian company announced. INTER RAO Bulgaria bought 33.4 per cent of Chimco’s shares at a price of BGN 1.98 per share through the stock exchange on February 21 this year. The debts of the Bulgarian fertilizer maker amount to some BGN 145 mln, half of which it owes to Bulgargas.
Source: Sega (10.03.2005)

The State to hold at least 51 percent in the capital of the Belene Nuclear Power Plant, but to search for opportunities for a minimum financial participation in the project, reads the ultimate version of the annex to the memorandum with the IMF in its Energy part, said Energy Minister Miroslav Sevlievski. Saturday last, he held talks with IMF Mission Leader for Bulgaria Hans Flickenschield. At the request of Minister Sevlievski, the version proposed by the IMF and stipulating the State to have a minority share in the project has been scrapped. By this moment, this is inadmissible and politically incorrect, Minister Sevlievski elaborated. At this stage it is pointless to talk privatization in the field of nuclear energy, he underscored. The agreement with IMF provides for further restructuring of the National Electricity Company and Bulgargas, as well as for the privatization of the TPPs based in Varna, Bobov Dol and Rousse.
Source: Standart (17.03.2005)

The state will hold at least 51 per cent of the capital of the second nuclear power plant in Belene, nut it would search for possibilities for low financial participation in the project. This is stipulated in the final reading of the additional agreement to the memorandum signed with the IMF in the Energy section, the energy minister Mr. Miroslav Sevlievski announced. On Mr. Sevlievski’s demand the reading offered by the IMF where the state should hold a minority stake in the NPP Belene’s realization has been rejected. Currently this is unacceptable and politically unfair, the minister explained. He added that the talks of privatization in the nuclear energy sphere are devoid of sense at the nowadays situation. The agreement writes that the restructure of the National Electricity Distribution Company (NEK) and Bulgargaz will continue, as well as the privatization of the thermo-electric power stations in Varna, Bobov dol and Rousse.
Source: Duma (17.03.2005)

In a supplementary memorandum for the economic policy towards the agreement with the IMF, is stated that the state has to own 51 per cent of the capital of Nuclear power plant station Belene, but will seek for minimal participation in the project. In the project is also stated that the reconstruction of the National Electricity Distribution Company and Bulgargaz will continue, as well as the privatization of the thermo-electric power plant stations Varna,. Bobovdol and Rousse.
Source: Pari (17.03.2005)

Two companies – Russia’s Inter RAO and Spain’s Indagro, are willing to buy Chimco’s debt to the local state-owned company Bulgargas, but with a reduction, sources from the energy ministry said. On February 22 this year, Inter RAO bought 33.4 per cent of Chimco’s shares through the stock exchange. In December last year, the local fertilizer plant was let out to Indagro Bulgaria at a monthly rent of BGN 100 000.
Source: Sega (22.03.2005)

The new team of the energy ministry does not mind the idea for increasing the capital of Bulgargaz and then offering the minority stake of some 10-15 per cent to the international stock exchanges in London and Frankfurt. The energy minister Mr. Miroslav Sevlievski assured this Stara Zagora MPs who met him during his 2-day visit in the region.
Source: Standart (23.03.2005)

The leaseholder of Chimco – Indagro – Bulgaria, which entered the claimed insolvency company as of December last year, is planning to negotiate with Bulgargaz in a way to buy up from it the fertilizers producer’s debts. According to the syndic’s estimation the plant’s obligations are over BGN 170 mln.
Source: Duma (23.03.2005)

The new energy minister Mr. Miroslav Sevlievski discharged Mr. Milen Chakarov from the Board of Directors of Bulgargaz SPJSC. Mr. Sevlievski appointed Mr. Viktor Tokushev to replace him.
Source: 24 chasa (25.03.2005)

Two foreign-capital companies are vying for a majority stake in Bulgaria's Chimco AD, the Vratsa-based fertiliser maker. Indagro Bulgaria, a subsidiary of Italy's Indagro, signed a lease agreement with Chimco's receiver late last year. The rent Indagro will pay for the one-year period is BGN 1.2 million. The company also pledged to invest some USD 40 million in technological renovation. On February 21, 2005 Inter RAO Bulgaria, a subsidiary of Russia's RAO EES, announced it had acquired 33.4% of Chimco's shares in a stock-exchange deal from the Cypriot owner. About a week later Inter RAO said it was holding negotiations with Bulgargas to cover Chimco's debts to the gas supplier. The information was confirmed by Bulgargas. In the meantime the PARI daily learned from insiders that Inter RAO was in talks to acquire the majority stake in Chimco. Lawyers said there were no legal obstacles to the purchase of the remainder of the shares by the Russian energy giant. An obstacle, however, has emerged: Indagro Bulgaria. About the same time when RAO announced its intentions, Indagro said it was ready to agree the settlement of Chimco's debts with Bulgargas and the National Electric Company and work out a rehabilitation programme. That may turn out Indagro's ticket to ownership of the plant.
Source: Pari (25.03.2005)

Bulgargaz SPJSC opened a procedure for the delivery of motor vehicles under the Public Procurements Act. As the assignor is a sector one the Law give it the right to chose each of the procedures. Based on this possibility the gas company announced a procedure of negotiating with an announcement, in which the assignor leads talks for defining the contract’s clauses with one or more applicants it elected after a preliminary selection.
Source: Dnevnik (25.03.2005)

Bulgargaz, the state-owned company in charge of the import and supply, transmission, storage and transit of natural gas, is in talks with Russia's Gazexport to update a 1998 agreement specifying the transit fees that Moscow pays to Sofia for the transit of Russian natgas via Bulgarian territory. A working group is tasked to put together by April 25 a proposal for the rewrite of the contract which otherwise expires in 2010. Gazexport has said it is ready to double the quantities transited to Greece after it agreed with Bulgargaz in 2004 to up the traffic to 2.7 bln cu m by 2010.
Source: Dnevnik (29.03.2005)

Natural gas prices will increase by 0.7% from April 1, 2005, Bulgaria's State Energy and Water Regulation Commission said. The raise will be discussed at a session Wednesday. In the second quarter of 2005 natural gas will be sold at BGN 230.000 per 1,000 cu. m, VAT exclusive, to consumers linked to the gas transit network and at BGN 237.72 to consumers linked to the gas distribution network. The price of transit will be BGN 19.73 per 1,000 cu. m, VAT exclusive. The request for an increase in prices was submitted to the commission on March 1 and was prompted by the higher prices of black oil. The latter are used as a basis for natural gas pricing. Another reason for the increase is the change in the US dollar rate, which jumped by 0.5% to the Bulgarian lev.
Source: Pari (29.03.2005)

Inter Rao Bulgaria JSC plans considerably large investments in Bulgaria. The company is a subsidiary of the Russian giant RAO EZS. Chimco is our first investment in Bulgaria and we want to resume the manufacture in 6-7 months and thus we will provide for hundreds of families in Vratza, the CEO Mr. Roman Miretzki said. In a way to fasten work however first negotiations with Chimco’s creditors should be lead for the company’s debts and to specify the amount of the obligations, which the major shareholders are ready to pay. That is the reason why Inter Rao Bulgaria has sent a letter to Bulgargaz and the National Electricity Distribution Company (NEK) stating the will to pay fertilizers producer’s debts.
Source: Duma (29.03.2005)

The creditors of Bulgaria's fertiliser maker Chimco have to elect a second permanent receiver at a general meeting on May 5, 2005. The decision for appointment of a second receiver, which was requested by the National Electric Company (NEK), was taken by the district court in Vratsa. The court also approved the list of creditors' receivables. The meeting of creditors has to determine the rules and procedure for sale of Chimco's property and for evaluation of its assets. An expert appraisal has established that Chimco's debts exceed BGN 150 million, while its assets stand at BGN 43 million. The company's main creditors are NEK and Bulgargas. In early December 2005 the Vratsa court ruled Chimco insolvent and opened a bankruptcy procedure. Boris Borissov was appointed temporary receiver and later chosen for permanent receiver by the creditors. Chimco's management and supervisory boards were deprived of managerial functions and the court distrained the plant's property. The substantial financial losses, however, have not reduced the appetites to the fertiliser maker. Insiders say that besides Indagro and Inter RAO, interest in the company is also demonstrated by a serious western investor in the chemical, cosmetic and fertiliser business. PARI daily's sources say that the investor has bought shares in Chimco on the bourse and his representatives already act on his behalf in the plant. Specialists explain the interest in Chimco with its trademarks, which are registered on the international market. The loss of the fertiliser maker in 2004 reached BGN 80.951 million due to record-high depreciation costs of BGN 75.064 million.
Source: Pari (06.04.2005)

The consumers of natural gas, provided by Bulgargaz, owe BGN 275 mln, company’s CEO Mr. Kirl Getov announced. Heat Supply-Sofia is indebted with BGN 140 mln. The heat supply companies in Plovdiv, Pleven, Shoumen, Bourgas and Varna are also among the big debtors. All the current proposals for rescheduling Chimco’s debts are unsatisfactory, the energy minister Mr. Miroslav Sevlievski stated.
Source: Standart (07.04.2005)

A new transit gas pipeline worth some EUR 400 million will be constructed in Bulgaria in the years to come as part of the Nabucco international project. In a months time an agreement will be signed between Bulgaria, Turkey, Romania, Hungary and Austria, the five countries participating in the Nabucco project. Immediately after that, the Nabucco Company Pipeline Study, in which Bulgargas holds 20 percent, will be transformed into Nabucco International Investment Company. By end-2005 the needed funds for the construction (EUR 4.6 billion) will be provided with the support of ABN Amro.
Source: Standart (07.04.2005)

The two companies which wanted to buy Chimco’s debt to Bulgargas – Russia’s Inter RAO and Swiss-registered Indagro have not presented proof they were able to relaunch production in the Vratza-based fertilizer plant, minister of energy Mr. Miroslav Sevlievski said. Their offers have been assessed as unsatisfactory.
Source: Sega (07.04.2005)

Italy's Gruppo Societa Gas Rimini will invest some 300 mln levs over the next couple of years as part of the deployment of networks for the household and industrial consumption of gas in the Trakia region, the company saif on Wednesday, April 6. The first consumers are expected to be plugged into the gas distribution network in early 2006. Gruppo Societa Gas Rimini won the 35-year gas distribution permit in February 2005. Two of the other candidates for the Trakia licence - a tie-in led by Italy's Costruzioni Dondi S.p.A., gas and water utility Enel and EVN of Austria, have contested the outcome form the tender in court, arguing that the composition of the State Energy and Water Regulatory Commission, the authority that issued the permit to Gruppo Societa Gas Rimini, does not comply with the effective legislation. Bulgarian gas supplier Overgas Inc. was the fifth contender for the licence but has not joined the litigious effort. Trakia is one of the eight districts into which Bulgaria’s territory has been zoned for the award of contracts to build networks for household and industrial use of natural gas. The Trakia region encompasses 39 municipalities, including five where the gas licences have been awarded. The region is rich in industrial gas consumers but as much as 71% of the households don't have central heating. The only exceptions are the municipalities of Kazanlak and Plovdiv which have district heating companies. The consumption of gas in the region is estimated at 188 mln cu m. At least 58 mln euro will have to be invested in the region's gas distribution infrastructure. In related news, Kiril Gegov, executive director of state-owned gas supplier Bulgargaz, said the company has started signing over its end-users to the investors in the gas distribution regions.
Source: Dnevnik (07.04.2005)

The capacity of the gas-depository near the village of Chiren, Vratsa region, will be increased by 300 million of cubic meters, as the new operation system for tilted probing took force today. The value of the unique natural depository is EUR 1 bln, the energy minister Mr. Miroslav Sevlievski was the first to announce. Bulgargaz has invested over BGN 30 mln in the modernization of the Chiren gas depository.
Source: National television (11.04.2005)

Indagro Bulgaria, the lessee of idled urea maker Chimco, has sent a letter to Bulgaria's energy ministry, asking to receive a response by April 20 to the proposal extended in late March to settle the debts of the idled fertiliser plant to gas supplier Bulgargaz. Indagro Bulgaria leased Chimco's assets in late 2004 against a monthly rent of BGN 100,000. Energy minister Miroslav Sevlievski has said the proposal does not guarantee that the plant will resume operation and has dismissed it as unacceptable. Chimco owes Bulgargaz BGN 120 mln.
Source: Dnevnik (11.04.2005)

The case against the former head of Bulgargaz Mr. Vasil Filipov was postponed again. The session scheduled for Thursday /April 7/ was postponed because of the claim of one of the experts, having prepared the triple economic expertise. The document should answer the question if Bulgargaz has non-tax obligations for the State Budget for 1997. Mr. Fillipov was accused in not implementing his official duties and concluding in 1997 a not advantageous deal with the US offshore company Hardland Investment.
Source: Banker (11.04.2005)

Bulgargaz announced two public procurements through negotiating with an announcement under the Public Procurements Act. One of them is for project, delivery and fitting of videowall in the Central office of the gas company, and the other – for expansion if the information system. The screen will improve the dispatcher observation of the work processes, the company announced.
Source: Dnevnik (15.04.2005)

Four private companies have used Bulgargas’s gas depot near the village of Chiren (Vratza region) to store their own natural gas, the state-owned company’s CEO Mr. Kiril Gegov said. These are Devnya-based fertilizer maker Agropolychim, Pernik-based Stomana Industry, Stamboliiski Paper Plant, and Dexia JSC. A total of 104 mln.c.m. of natural gas for the needs of these companies were crammed into the depot at a price, fixed by the regulatory commission – BGN 2.49/1000c.m. a month. For the past two years, a total of 230 mln.c.b. of natural gas owned by other companies have been stored in the depot of Bulgargas. The storage and profit from this operation became possible following the adoption of the Energy Act in the end of 2003. Before that, the gas depot near Chiren was used only for the needs of the state monopolist.
Source: Banker (18.04.2005)

Orders from the New World will save this summer the workers of the Dimitrovgrad-based Neochim from the usual long summer vacation. The fertilizer enterprise has received orders for some 20,000-25,000 tons from Brazil and the USA, the company's BoD Chairman Tosho Dimov told the BANKER weekly. "Because of these orders the plant will be working till June instead of going out on a 'summer holiday' as usual", Mr. Dimov added. He recalled that last year the company entirely renewed its main ammonia production, investing EUR6MN in it. "We'll continue the construction of an electricity generator that will serve Neochim", Mr. Dimov added. About EUR3MN has been invested in the generator so far and the amount may reach EUR5MN till the project's completion. Neochim's net profit for the first quarter of 2005 is BGN4.3MN, about BGN400,000 down year-on-year. Sales proceeds for the same period totalled BGN51.1MN, down from BGN54.9MN in January-March 2004. The plant's expenditures in the first three months of 2005 amounted to BGN37.5MN, and the undistributed profit was BGN59.5MN. Like all domestic fertilizer enterprises Neochim has huge liabilities to the state-run gas distributor Bulgargas - BGN14.1MN - rescheduled for ten years under an agreement from the end of 2002. The Necohim joint-stock company has equity capital of BGN2.7MN, distributed between Euro Fert AD - Dimitrovgrad (49%), Karifert International - Lebanon (16.05%), Agrofer International Establishment - Liechtenstein (7.68%), Albena Invest Holding (6.38%), and others. The company is managed by the Executive Director Dimiter Dimitrov and has 1,380 employees. Neochim has eight subsidiaries: Neochim Engineering, Himik, Neochim Catering, Neochim Tour, Neochim Protect, Trakia Press 21 Century, Neochim SA - Odrin, and Neochim Ltd. - Odrin. On October 25, 2002 and November 2004, respectively, the managers of the Dimitrovgrad-based firm made decisions to wind down Neochim SA - Odrin and Himik. The process in the Turkish subsidiary has not been completed yet, while Himik has already begun to get the statute of Neochim's workshop. At the expense of that the company's managers increased the capital of Neochim Tour EOOD to BGN740,000 by contributions in kind - land, buildings and equipment.
Source: Banker (03.05.2005)

The State Receivables Collection Agency /SRCA/ in Pernik will sell-off real estates of the glassmaker Crystal. The offers for purchasing the separate real estates estimated to the total amount of BGN 987 470 will be opened on May 11 in the department’s office in Pernik. Crystal plant is the only local manufacturer of green glass. Few years ago, however, the company almost stopped operating, as Bulgargaz cut off the natural gas supply because of debts accumulated. Later Bulgargaz asked declaring Crystal insolvent due to a claim of some BGN 5 mln.
Source: Dnevnik (04.05.2005)

Sliven municipality will become partner in the second gasification and gas-supply company in the region. This became clear, after a session of local municipal councilors, on which they adopted the proposal of the town’s mayor Mr. Yordan Lechkov, according to which the municipality is to participate in the newly-established company with at least 20 per cent.
Source: Dnevnik (04.05.2005)

The creditors of Bulgaria's Chimco of Vratsa elected a second receiver of the fertiliser maker. This is the lawyer of Chimco's biggest creditor, Bulgargas. The two receivers have recommended a rehabilitation programme for the restart of the plant. The plan can be worked out by the creditors, the company's management and Inter RAO, which holds 33.4% of Chimco's shares and which claims that it has a majority stake together with connected persons. Readiness to recovery the Vratsa-based chemical plant has been so far voiced by Inter RAO and by the Bulgarian division of Swiss-registered Indagro, which signed a lease contract for Chimco's facilities in December 2004. Indagro recently said it was ready to build a new heating plant for Chimco and had agreed the supply of 500 million cu. m of natural gas a year from Gazexport. The complete list of credits and their receivables has to be updated by May 25, 2005. A triple expert appraisal has established that Chimco's debts exceed BGN 150 million, while its assets stand at BGN 43 million. Last December the Vratsa district court ruled Chimco insolvent.
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 50 to 100 people, insuring a total of 4001 people with an average insurance income of BGN 903. The company is included in the list. 46 JSC Information service – Plovdiv office – Plovdiv
Source: Other (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 100 to 250 people, insuring a total of 9,772 people with an average insurance income of BGN 773. The company is included in the list.
Source: Other (09.05.2005)

The residual 33-per cent state-owned stake in all 7 local electricity distribution companies (EDCs) will be listed on the stock exchange, deputy prime minister Mr. Nikolai Vasilev said during a discussion on the future of Bulgaria’s capital markets. The government is also planning to sell its 30-per cetn minority stake in Navigation Maritime Bulgare against compensatory notes, as well as a minority stake of the freight unit of local railway carrier BDZ following the company’s split into separate companies.
Source: Monitor (12.05.2005)

The view of the Bulgarian energy ministry is that Sofia's heating company can be put up for sale after it repays its debts to gas distributor Bulgargaz, said deputy energy minister Ilko Yotsev who is also chairman of Bulgargaz's Board of Directors. The heating utility accumulated some 60 mln levs in debts by 2003, but has been paying regularly its bills since then, Yotsev explained. One option to cover its liabilities is through a capital raise which, however, should be oked by the finance ministry first. At present the utility's capital stands at 107.6 mln levs. The state holds a 42% stake, the remainder is municipal property. Earlier this week municipal councilor Plamen Iliev, who also sits on the commission for the appointment of a foreign manager of the utility, announced that 51% of the utility’s capital could be sold to a private company by the end of the year and that the manager competition could be called off. Asked to comment Iliev's words, Yotsev said he was expressing his personal opinion, and added that it is still not clear how the municipal council would react to the proposal. The energy ministry will back a proposal for equity disposal only if it is guaranteed that the buyer will service the 114 mln euro loans to the EBRD and World Bank loans for the rehabilitation of the heating utility. The appointment of a manager is one of the conditions for the loans' disbursement put forth by the two lenders but the selection procedure has been dragging on for more than two years. Earlier this year the energy ministry proposed that the future manager should be offered a stake in the company. The commission on the appointment of a manager is expected to announce a new competition on Tuesday. Germany's RWE è ÌVV and France's Dalkia will be invited to submit bids. The Sofia utility provides heat and hot water to over 800,000 customers that account for 65% of district heat consumption in Bulgaria.
Source: Dnevnik (13.05.2005)

Without any auction or competition Bulgargaz SPJSC is starting a large-scaled construction of gas-regulation station near the village of Pokrovnik in a way to supply Blagoevgrad with gas. The total area of the facility will be 625 sq. m., the local municipal administration admitted. After the detailed structure plan enters into force the municipality will have to assign the estimation of the construction right and after its coordination with the Economy and Privatization Commission an order will be issued and a contract will be signed for founding the construction right.
Source: Viara-Blagoevgrad (16.05.2005)

A loan of the World Bank, which will be paid by the Sofia Heat Supply Company, will be used for electing a new consultant for company’s restructure. The special committee for the election of a company-manager of Heat Supply-Sofia decided this yesterday. It’s more than a year since it has not elected a company to manage the Sofia Heat Supply, as required by the credit agreement with European Bank for Reconstruction and Development (EBRD) for repair of the network in Sofia. The new consultant will have to analyze all the possibilities for the future of the company and to present its research in 22 weeks. According to Mr. Plamen Iliev the new consultant will consider the option of selling the 58 per cent of the shares of Heat Supply that are held by Sofia Municipality. The rest shares are owned by the state. According to the councilor Mr. Atanas Tasev it is possible the consultant to offer a variant reading for selling the company’s obligations to Bulgargaz through a cession. They exceed BNG 70 mln.
Source: Sega (17.05.2005)

A new joint stock company – Novo Chimco, was established for the special purpose of putting forward the recovery programme for Chimco, the Vratza-based fertilizer plant. The company was registered for unlimited term, and has a capital of BGN 50 000. A foreigner with Bulgarian citizenship – Mr. Leonid Berenbaum, holds one-fifth of the firm’s stock, and the rest of its is controlled by the Italian citizen Giovanni Del Conte. Mr. Del Conte is the owner of Indagro – the company that hired the capacities of the Vratza-based plant for a period of one year. The court registration happened for a day only. BGN 12 500 of the share capital was deposited, and the rest should be transferred in 2 years. Chimco is under insolvency procedure following the claim of the creditors Bulgargaz and National Electricity Distribution Company.
Source: Standart (26.05.2005)

Bulgargas will use 50 per cent of the dividend allotted for the state in 2004 for rehabilitation and modernization of the existing gas transmission network and building of a new one, the Government decided. The company has been assigned to study possible ways of expanding the market of natural gas, as a highly ecological and effective primary energy carrier.
Source: Pari (27.05.2005)

The management of Chimco JSC – Vratza /insolvent/ put forward in the Court a recovery program, which was prepared by the new Managing board and the major shareholder Interrao, the plant announced in a fax signed by the CEO Mr. Stoyan Kolev. The program stipulates paying company’s debts to Bulgargaz in 10 years and payment to the smaller creditors. The total amount of the Chimco’s obligations to the National Electricity Distribution Company and Bulgargaz is BGN 133 mln.
Source: Sega (27.05.2005)

Gas Supply-Haskovo JSC was declared insolvent. Haskovo District Court approved the claim of Bulgargaz SPJSC, because of unpaid debts of BGN 224 000, formed by unpaid natural gas delivery and interests accumulated. Chimmash JSC also joined the claimants.
Source: Pari (30.05.2005)

Inter RAO Bulgaria, where the Russian giant RAO EES Russia is a shareholder, which won the auction for TPP Varna and Rousse, bought over 700 000 shares of the fertilizer maker Chimco – Vratza through Bulgarian Stock Exchange – Sofia. Capital Markets JSC is deal’s consultant and direct executor.
Source: Pari (01.06.2005)

Inter Rao Bulgaria is the company that bought 33.4% of the shares in Chimco of Vratsa. Earlier this week Inter RAO acquired another 5%. Nevertheless, its representatives have not been yet admitted to management of the fertiliser maker. Inter RAO's rehabilitation programme was submitted before Novo Chimco's plan, which has been already approved. By June 6, however, the district court in Vratsa has to decide whether to admit Inter RAO's programme for consideration. If the decision is affirmative, a meeting of the creditors will be called to choose between the two programmes. Inter RAO's plan envisaged immediate payment of all debts of the company, except for dues to the National Electric Company and Bulgargas, where the amount exceeds BGN 100 million. These bigger debts will be rescheduled for ten years and will be paid in semi-annual installments with an annual interest of 3%, Inter RAO lawyer Alexander Georgiev said. Willingness to rehabilitate the chemical plant has been so far shown by Inter RAO and the Bulgarian branch of Swiss Indagro, which has rented Chimco's facilities since December 2004. One of Indagro's shareholders and its executive director are shareholders in Novo Chimco. According to the company, Chimco can reach 30% of its capacity in a couple of months. Chimco's loss last year surged four-fold, reaching BGN 80.951 million, company data show. The negative result was mainly due to the depreciation of fixed tangible assets worth BGN 75.064 million and the low income (just BGN 2.111 million).
Source: Pari (02.06.2005)

The Nabucco gas pipeline, which will connect the Caspian region with West Europe, will cross the Bulgarian-Turkish border in the municipality of Bolyarovo, Yambol region. The pipe will cross the border with Romania near Kozloduy, energy minister Miroslav Sevlievski and Bulgargas CEO Kiril Gegov said in Varna. The two attended the meeting of the managing committee of Nabucco Study Company, which includes the gas companies of Turkey, Bulgaria, Romania, Hungary and Austria. The five manage more than EUR 10 billion, Sevlievski explained. The meeting discussed the restructuring of Nabucco Study Company into Nabucco International, which will take over the construction of the pipeline, Gegov said. The pipe will be 3,300 km long and will have a transit capacity of 25.5 to 31 billion cu. m a year. The pipeline on Bulgarian territory will be about 400 km long. Nabucco International is envisaged to have subsidiaries in the five transit countries. They can take over the operation of the facility or assign it to another company with more experience in gas transit. The total investment in the project is assessed at EUR 4.6 billion. The Bulgarian section is estimated at some EUR 400 million. The project has to be launched in 2008 and finished in 2010.
Source: Pari (03.06.2005)

OMV Gas and Bulgargas signed an agreement for cooperation in the gas business on the basis of their engagements under the NABUCO gas-main project, OMV Gas announced. By the year 2011, the gas-main, connecting Turkey and Austria and passing through Bulgaria, Romania and Hungary, is expected to be completed.
Source: Pari (06.06.2005)

Bulgargaz SPJSC announced a contract procedure without promulgation for electing a legal bureau to represent the company in the action for collecting unpaid receivables of Lukoil-Neftochim JSC. Bulgargaz said it was about collecting debts for exhausted by the petroleum company natural gas some 7-8 years ago. The obligation totals millions of Bulgarian leva, and raised in the years before Lukoil-Neftochim’s privatization.
Source: Dnevnik (08.06.2005)

The Minister of Energy and Energy Resources Mr. Miroslav Sevlievski officially opened yesterday in Dupnitsa the new gas-measuring station of Bulgargaz. It is built on the ground of the purifying facility Piperovo. The company’s CEO Mr. Kiril Gegov also presented at the opening. The new station will allow supplying the towns of Dupnitsa and Sapareva Banya with natural gas. The Piperovo purifying station is the beginning of the future gas-conduct for Serbia, Mr. Gegov said.
Source: Pari (08.06.2005)

Turkey's Sisecam will build three instead of two sheet glass plants in Targovishte (northeastern Bulgaria). This emerged at the opening of an automated gas distribution station and a gas measuring station on the plant's grounds Wednesday. The inauguration of the facilities, which cost a total of BGN 1.342 million, was attended by energy minister Miroslav Sevlievski. The construction of the two stations was financed and designed by Bulgargas. The facilities will supply a total of 80-85 million cu. m of natural gas a year. Sisecam's Trakia Glass has requested some 60 million cu. m. Later in the day minister Sevlievksi turned the first sod for the construction of an electricity supply substation to the glass plants. Trakia Glass needs a capacity of 50 mW, National Electric Company (NEK) chief engineering Mityo Hristozov said. The investment totals some BGN 6 million and has been provided by NEK. The project will be completed in eight months and will employ 70 people. A total of 350 people hired from all over the country are currently building Trakia Glass plants. Some 1,100 people will be employed in production after all the three facilities are finished.
Source: Pari (16.06.2005)

In accordance with Vratza District Court decision, from the 15 of June, two rehabilitation programs for Chimco JSC – Vratza will be considered by the creditors board- those of new-founded Novo Chimco and the one of Inter Rao Bulgaria JSC. The latter possesses 38 per cent of the Vratza -situated enterprise, and the former puts forward the program from the behalf of all syndics, said Mr. Andrei Semerdjiev from the managing board of Novo Chimco.
Source: Pari (17.06.2005)

Electricity Distribution Company Stara Zagora JSC, which was bought in 2004 by the Austria-based EVN, was awarded yesterday for lowest electricity losses on the occasion of The Power Engineers’ Day. Only 13.52 per cent of the electricity are lost in the network of the Stara Zagora-based company, which includes the Stara Zagora, Plovdiv, Yambol, Bourgas and Sliven districts. This is 5 per cent less than the average index for the country. Electricity Distribution Company Varna was prized for the company with the largest number of electro-meters replaced – 168,500. The other prizes were granted to the National Electricity Distribution Company, Bulgargaz, Rahovetzgas, Thermo-electric power station Maritsa-iztok-2, HPP Teshel, Tera Invest – Sliven, Heat Supply – Vratza, and to the former Minister of Energy and Energy Resources Mr. Milko Kovachev for the electricity power strategy and new energy law voted.
Source: Sega (20.06.2005)

Yesterday Bulgargaz started the construction of a new gas-measure station in the town of Simitly, which would allow the gas-supply of Simitly, Bansko, Razlog and the local villages Banya, Dobrinishte, Krupnik, and Cherniche. The deputy Minister of Energy and Energy Resources Mr. Ilko Yotsev and the Bulgargaz’ CEO Mr. Kiril Getov presented at the ceremony.
Source: Pari (21.06.2005)

EU’s Association Committee has pointed Bulgargaz’ monopoly over the foreign trade in natural gas, and the slow advance of the construction of nuclear waste storage as reproof to Bulgaria. The European affairs minister Ms. Meglena Kouneva stated yesterday in the town of Rousse. According to experts it concerns the delay in the construction of nuclear waste raw storage, which should be built by NPP Kozloduy. It costs EUR 48 mln, as the funds are a part of the aid granted by the EU for closing the small reactors.
Source: Sega (21.06.2005)

The development strategy of the state-owned Bulgargaz SPJSC, which is based in the Bulgaria’s energy strategy, stipulates fast development of the natural gas market and wider spread use in households, in public and administrative sector, in smaller enterprises and agriculture. The company announced that one of the projects of priority is constructing a plant for manufacture of flat and household glass near the town of Targovishte. The company will make investments to the amount of BGN 1,343,800. The gas supply aims at attracting other foreign investors in Bulgaria, providing better option for development of concomitant manufacture, and making Bulgaria a regional leader in the glass making.
Source: Cash (24.06.2005)

The price of natural gas will go up by 1.9 per cent in the third quarter, which means that Bulgargaz is going to sell it at BGN 234.46/1000 cu m, instead of the former price of BGN 230. The reason for the increase are the higher prices of alternative fuels. The State Commission for Energy and Water Regulation is expected to make a decision in a few days.
Source: Sega (28.06.2005)

Veliko Tarnovo District Court registered the following changes for Evifrusich – SPLTD, Veliko Tarnovo: The following companies were registered as partners: Evis – Emil Boyanov ST – Veliko Tarnovo, OAO Sumsko Machine Construction Science and Manufacture Union M. V. Frunze – Ukraine, and OAO Motor Sich – Ukraine; Mr. Emil Boyanov Pavlov was effaced as capital’s sole proprietor; The company was registered under a new title – limited liability company Evifrusich – LTD; The registered line of activity was effaced; The following new line of activity was registered: execution of the contracts with Bulgargaz SPJSC – Sofia, import, export and modernization of gas-compressing aggregates; the company shall be managed and represented by Mr. Olexandr Koroliov, who will manage and represented the company together with Mr. Emil Boyanov Pavlov
Source: State Gazette (28.06.2005)

The state-owned company Bulgargas is obliged to provide at least EUR 200 mln for the building of the NABUCCO gas-main, which will transfer natural gas from the Caspian sea to Central Europe. A day ago, a joint venture was registered in Vienna under the name Nabucco Gas Pipeline International. The agreement for the establishment of the joint venture was signed by the directors of Bulgargas, Turkey’s Botas, Hungary’s MOL, Romania’s Transgaz, and Austria’s OMV Gas.
Source: Sega (30.06.2005)

Sofia City Court registered the following changes for Bulgargaz SPJSC: registers an increase of the capital of own funds of the company from BGN 725 310 642 to BGN 825 310 642, by issuing of 100 000 000 new registered bonds with a nominal value of BGN 1 each; registered changes in the company’s rules according to the changes in the protocol decision of the minister of energy and energy resources.
Source: State Gazette (05.07.2005)

Sofia City Court allows the application in the companies register, of the verified and adopted annual finance report for the year of 2003 for Bulgargaz SPJSC.
Source: State Gazette (05.07.2005)

Sofia City Court registered changes for Bulgargaz SPJSC: registers an increase of capital from BGN 645 310 642 to BGN 725 310 642 by using its own funds and through issuance of 80 000 000 registered shares with a nominal value of BGN 1; registered changes in the company rules in accordance to protocol decision of the minister of energy and enrgy resources.
Source: State Gazette (08.07.2005)

The capital of state-owned gas company Bulgargaz will be raised by 80 mln to 725.3 mln levs, shows a an announcement published in Bulgaria's Official Gazette last week. The exercise will be financed with the company's own funds. The '04 investment budget of the company is 45 mln levs, down from 51 mln levs a year earlier. Among the projects slated for implementation this year is the construction of gas meter stations in Blagoevgrad, Simitli, Bansko, Razlog, Sandanski and Pavlikeni.
Source: Dnevnik (11.07.2005)

Two rehabilitation programs for Chimco JSC will be discussed today on a creditors’ meeting in the building of Vratza District Court. The first program is put forward by the major shareholder of Chimco JSC- Inter Rao Bulgaria JSC, and the second by Novo Chimco, a company established in May. Both programs offer different schemes for paying back Chimco’s debts towards Bulgargaz SPJSC and the National Electricity Distribution Company SPJSC, which exceed the sum of BGN 150 mln.
Source: Standart (28.07.2005)

The general meeting of Chimco was postponed for a non-fixed date. The reason is that there is a new judge on the insolvency case for the Vratza -based company. On the meeting a new rehabilitation plan for the company will be chosen. Two companies have put forward rehabilitation plans, and those are: Novo Chimco and Inter Rao Bulgaria JSC. Magistrates declared Chimco insolvent with debts of BGN 158 mln. Both rehabilitation plans offer different ways for paying back the BGN 151 mln debts towards the major creditors Bulgargaz SPJSC and National Electricity Distribution Company SPJSC.
Source: Pari (29.07.2005)

3 per cent of the population in Bulgaria have been giving up BTC annually over the past 2-3 years. This is read in this year’s report of the Applicable Researches and Communications Foundation about Bulgaria’s development in the information community sphere. The people forsake their home fixed phones as they don’t have the ability to pay the increasing monthly charge and the short distance calls, the research stated. A part of the subscribers switch to the mobile operators preferring the pre-paid cards allowing them to be asked for without paying anything. Another parts of BTC’s clients turn to the alternative telecoms. By 2008 the new operators of fixed service, which are currently 13, will take away some 50 per cent of BTC’s international calls, 20 per cent of the long distance ones, and 6 per cent of the short distance, providing revenues of BGN 100 mln, the analysis said. Almost all of the big infrastructure companies such as Bulgargaz, National Electric Company, Overgas, National Company Railway Infrastructure, etc. have been constructing national networks for internal needs, for leasing, and offering telecommunication service at the market.
Source: Novinar (01.08.2005)

Bulgargas increased the transit of Russian natural gas through the territory of Bulgaria by 9.166 billion cu m in the first seven months of the year, up by 24.47% as compared to the situation a year earlier. Bulgargas delivers Russian gas to Turkey, Greece and Macedonia, with the Turkish share leading the way. Simultaneously, internal consumption was also increasing, the largest augmentation was generated by electricity distribution companies that used 30% more gas over the same period. Lukoil Neftochim raised its natural gas demands by 15.5%. Other large consumers were metallurgy companies, firms from the construction sector, glass and porcelain makers. At present, Bulgargas is focusing in building methane filling stations, because the methane is becoming increasingly attractive in the context of the high petrol prices.
Source: Pari (08.08.2005)

Notification about the top 50 of the most loyal employers with a staff of 50 to 100 people, insuring a total of 4054 officers with an average insurance income of BGN 898, for the first half of 2005 48 JSC Information service – Plovdiv office – Plovdiv
Source: Other (08.08.2005)

Heating Company of Veliko Tarnovo, northern Bulgaria, will reduce the prices of heating for corporate clients, simultaneously increasing those for households in autumn 2005. The price per MWh of heating for companies will be decreased to BGN 70.23, down from BGN 91.88 which is asked at present. Households will pay BGN 52, up from the BGN 49.90 they pay now. The prices do not include VAT. The Veliko Tarnovo Heating Company was prvatised by Eco Energia Holding on February 1, 2005 and the new owner unilaterally without any notice raised the prices making a promise that its services will become cheaper by 30% after the company shift its heating production to natural gas. However, the company did not keep its promise and did failed to modernise its production.
Source: Pari (16.08.2005)

Heat Supply-Pleven has receipts of BGN 12 mln as to the beginning of the month. The major part of them amounting BGN 11.17 mln is accumulated from unpaid heat power used by subscribers. Some BGN 2 mln are owed to Heat Supply by industrial and budget consumers. Thus a special unit for receipts collection was settled. The new company’s CEO Mr. Lyubomir Lyubenov, the owner of Metroni SPLTD, was the one to made the idea.
Source: Monitor (17.08.2005)

The good news for the company became possible after the National Electric Company (NEK) has bought a 400-KV sub-station of the Radomir-based Radomir - Metals JSC located in Chervena mogila, as the sub-station is included in the energy ring of the country. This was announced by Mr. Lyudmil Alexandrov – a member of the Board of Directors of the Radomir-based company. When finalizing the sale deal all the debts of the metallurgy enterprise to the electric company. According to Mr. Alexandrov currently Radomir - Metals JSC does not owe anything to NEK for used electricity. The sub-station was built in the period 1986-88. Later the facility was included in the assets of the state-owned company Redomir Metals. Despite this the sub-station was managed for years by NEK, which decided to claim its ownership via court a few years ago. The already privatized company Radomir Metals showed to the judges all the necessary ownership documents. After nearly 4 years lasted lawsuits the court stated that the sub-station was ownership of the Radomir company. However the problem with the Bulgargaz’ threats to cease supplying the company with gas is not yet worked out.
Source: Other (17.08.2005)

Over the next five years, natural gas prices will vary between BGN 47.21/1000 cu m for industrial consumers and a little over BGN 500/1000 cu m for household consumers, show the business plans for 2009 prepared by a number of gas distribution companies. All 6 companies are planning to increase their sales over this 5-year period and to expand their gas distribution networks, located in Targovishte, Dobrich, Kyustendil, Kavarna, Dolni Dabnik and Nova Zagora.
Source: Sega (23.08.2005)

While oil prices keep soaring, the fact that natural gas prices grew by 1.6% in a year came as a pleasant surprise to chemical plants which are among the largest blue fuel consumers in the country. Bulgargas currently sells 1,000 cubic metres of natural gas to chemical enterprises at BGN234.46. A year earlier plants paid BGN231.75 for the same quantity. However, even these figures will hardly satisfy the managers of fertilizer plants which pay 80% of their material costs for blue fuel. The only operating companies in the branch right now are Neochim and Agropolychim. They demonstrated enviable results for the first half of the year and still never stop seeking ways to raise their efficiency. Being a public company, Neochim drew the attention of the investors also due to the fact that its share prices grew up by 16.67% in the past three months. The company ended the first six months with a non-consolidated profit amounting to BGN9.85MN. It is worth mentioning that for the same period of 2004 the profit was twice lower - BGN4.6MN. Sales revenues of the Dimitrovgrad-based plant went up, too - from BGN94.5MN to BGN109.7MN. Neochim's swollen turnover is mainly due to sales abroad which brought it BGN66.7MN worth revenues. It should be noted that the plant went out in summer holiday a little later than it usually does because of orders from the USA and Brazil for about 20,000-25,000 tons of fertilizer. Ammonium nitrate is the most actively bought product on both the foreign and the domestic market and accounts for a half of the company's revenues. The expenses of the Dimitrovgrad-based fertilizer producer have grown, too, although with a slower speed - from BGN90.9MN to BGN101.3MN. BGN59.7MN of the money went for the purchase of natural gas. That is why it is no surprise that the company accumulated long-term liabilities to Bulgargas. They amount to BGN14.1MN as of June 30. In 2002, the managers of Neochim reached an agreement with the state monopolist to pay off their debt rescheduled in ten years with a two-year grace period. At present, large stakes in the company are held by Euro Fert AD - Dimitrovgrad (49%), Karifert International - Lebanon (16.07%), Agrofer International Establishment - Liechtenstein (7.68%), and Albena Invest Holding AD (6.38%). The managers of the other fertilizer plant operating now, the Devnya-based Agropolychim, did their best in 2005 to limit as much as possible the company's relationships with the monopolist Bulgargas. In July, the Commission for the Protection of Competition permitted the Swiss company Wintershall Erdgas Handelshaus Zug AG to acquire 51% of the shares of Agropolychim in Dexia Bulgaria EOOD - Devnya. The deal aims at improving the efficiency of the natural gas commercial operations. In fact, it is worth noting that Dexia-Bulgaria's only activity is to buy natural gas from the producer, Petreco Bulgaria EOOD, and sell it to the Devnya-based fertilizer plant. In 2004, Dexia-Bulgaria delivered about 27% of the blue fuel Agropolychim needed, and for the first half of 2005 its share in the supplies reached 78 per cent. The Swiss company's role is to propose a solution for the construction of energy saving production installation. The partnership also stipulates a future possibility for additional natural gas supplies. Currently, Bulgargas controls 92.15% of the natural gas trade in the country, and companies from the chemical branch consume 33.79% of the raw material. Another big natural gas consumer is the Rousse-based producer of paints, lacquers and glues Orgachim. The company became a hit on the Bulgarian stock exchange as its share prices jumped from BGN40.40 to BGN63 for three months. It ended the first half of the year with a net profit amounting to BGN880,000. For comparison, the profit amounted to BGN571,000 a year earlier. It should be noted, however, that the company ended the first quarter at a BGN833,000 loss which its managers explained with the changed dollar/lev rate and the slack market of paints and lacquers. However, Orgachim's half-year revenues indicate that the new season is much more beneficial. They are up from BGN21.5MN to BGN37.5MN. Sales revenues (grown from BGN21.2MN to BGN34.4MN) contributed most to that growth. Orgachim holds about 37% of the domestic paints and lacquers market. Still, export accounts for 57% of its revenues. The company exports its products to Turkey, Greece, Romania, Egypt, Central Europe, the Near East and the former Soviet republics. Its operating costs have increased, too (up from BGN20.5MN to BGN33.4MN). As it happened with Agropolychim, Orgachim's market position attracted the interest of a western company. In June, the Spanish Nubiola acquired a unit of the Bulgarian chemical enterprise and paid EUR1.5MN. A great part of the products will be used in the production of the Rousse-based company. Orgachim was established almost one century ago. In 1998, 51% of its capital was privatized by the Maltian Whitebeam Holdings Limited (which currently controls 64.21%). However, the actual owner is the Romania-registered Policolor AD which is also Orgachim's trade partner.
Source: Banker (07.09.2005)

The gas supply of the Aktavis plant in Dupnitsa started. The gas supply will be implemented via joining the transit gas conduct from Russia to Greece and Macedonia. The project stipulates the construction of a link from the gas measuring station of Bulgargaz to the plant.
Source: Struma - Blagoevgrad (10.09.2005)

The first stage of the project for the gasification of Bansko, Razlog, Dobrinishte, Banya and Gotze Delchev will start by the end of this year, according to information by Sofia-based Chimcomplect Engineering JSC, which won the competition for executor of the project, organized by Bulgargas SP JSC. At a special meeting with representatives of the municipal authorities, specialists from the company explained the stage of the implementation of the big project.
Source: Monitor (12.09.2005)

Bulgarian firms may have to deal with a 23% hike in gas prices On top of the buoyant oil prices on the international markets and the forthcoming upward adjustment of electricity tariffs for the small businesses, Bulgaria's economy may well have to cope with yet another shocker: state-owned gas company Bulgargaz has asked the energy regulator for permission to increase the price of natural gas by 23% from October 1. Sources told Dnevnik the energy ministry was sounded on the increase which Bulgargaz motivates with the rising oil prices and the new gas delivery tariff enforced by Russia's Gazprom. The confluence of these two factors gives Bulgargaz the right to request the price revision which, unofficial sources said, would see the fuel go from 234.46 levs to 288.18 levs/1,000 cu m. Bulgargaz executive director Kiril Gegov refused to confirm the proposed price adjustments before the regulator has reviewed them. The major gas consumers worry that not only is the unexpected price hike not been factored into their budgets and pricelists but it coincides with the soaring oil prices, the pressure from the ruling BSP to increase salaries, the upcoming upward correction in the occupation-specific social insurance floors and the lack of visibility on the government's tax policy. One of the biggest domestic gas consumers are the district heating companies where fuel costs account for 70% of the price of their output. The Sofia district heating company alone consumes 30% of the natural gas sold on the local market. If the price increase is approved by the regulator, the company will have to focus exclusively on export, said Vasil Alexandrov, executive director of fertiliser plant Agropolychim. The move will force us to close the inefficient company divisions and invest in less fuel-intensive technologies, said Spas Shopov, executive director of sanitary wares maker Han Asparuh. The price hike is expected to hurt also the metallurgy and mining industries, the producers of construction materials and owners of methane-fuelled vehicles.
Source: Dnevnik (13.09.2005)

"The price of natural gas will go up by about BGN 50 per cu m as of October 1," Deputy Chair of the Energy and Water Regulation State Committee (EWRSC), Mr. Ignat Tomov said. The price will be increased after a proposal by Bulgargas. "The proposal has already been approved by the Ministry of Economy and Energy and is currently awaiting the decision of EWRSC," Ms. Ivelina Burneva from Bulgargas said. The price of natural gas is to be increased due to the hike in oil prices. At present, Bulgargas sells natural gas at a price of BGN 281,35 to big consumers and BGN 290,62 to small ones. VAT is included in the prices.
Source: Standart (14.09.2005)

The contract with Gazprom for delivery and transit of natural gas will be reviewed by the end of this year, deputy prime-minister Mr. Rumen Ovcharov said. He admitted that the contracts were signed at prices which were favourable for Gazprom, but considering higher oil prices and cheap US dollar, they are already too low. Therefore, the Russian party asked for the reviewing of the contracts. “We will do our best to protect Bulgaria’s interest, but there is a risk of a negative impact for Bulgargaz,” minister of economy said.
Source: Sega (14.09.2005)

There are no obstacles to the privatisation of large state-owned companies like Bulgargas and the National Electric Company (NEK) but they have to be restructured first, Bulgarian energy minister Rumen Ovcharov said Tuesday, presenting his team. According to the European restructuring requirements, the legal activities of public supply should be separated from the service operator, the minister recalled. The question is if it is worth doing, since in recent years many European companies have become multi-utilities, i.e. suppliers of natural gas, electricity and heating all at once. The model chosen in Bulgaria makes companies compete for small segments and this prevents them from generating big financial resources and penetrate the international markets, Ovcharov explained. The fate of the privatisation deals for the thermal power plants (TPP) in Varna, Rousse and Bobov Dol are clear already. The prosecuting authorities have banned the sale of Bobov Dol's assets. The sale of the Varna TPP to Russia's RAO United Energy Systems (UES) has to be finalised within a week. The company offered EUR 478.819 million for the plant. Whether RAO UES will also buy the facility in Rousse depends on the decision of the Supreme Administrative Court. A new sales procedure may have to be opened. A revised appraisal of the assets of the electricity distribution company (EDC) in Sunny Beach is expected within a week. The utility had to be included in the package of the EDC in Stara Zagora as part of the deal with Austria's EVN. Prices are not within the prerogatives of the economy ministry but I believe that the new prices of natural gas were provided for in the 1998 agreement between Bulgargas and Gazprom, Ovcharov added. The Agency for Economic Analysis and Forecasting is preparing an analysis of the impact to be exerted by the rising crude prices on the Bulgarian economy. After the document is ready, we will see whether to reduce excise duties or take other measures, the energy minister said.
Source: Pari (14.09.2005)

The strategy for the privatization of local tobacco monopolist Bulgartabac Holding should be clear by the end of this year, minister of economy and energy Mr. Rumen Ovcharov said yesterday, upon presenting his deputies. Mr. Ovcharov explained that before initiating any actions related to the sell-off of local tobacco enterprises, a political decision has to be made as to whether the holding would continue to combine market and social activities, as well as whether it would produce both tobacco and cigarettes. If we decide to privatize the enterprise in parts, the procedure will most probably be conducted by the holding, the minister commented.
Source: Monitor (14.09.2005)

The shareholders of Bulgaria's Chimco will hold a general meeting Friday on the initiative of Inter RAO, which holds 33.4% of the capital. The agenda includes changes to the company's statutes, to ensure that management decisions will be taken unanimously in future, Inter RAO told the PARI daily. The representatives of Cypriot A.V.S.T., which holds 36.442% of Chimco's shares, will be removed from the supervisory board on Friday. They will be most probably replaced by Inter RAO's reps. Together with connected persons, Inter RAO holds the majority package in the company. Nordic Oil, a Norway-registered subsidiary of Russia's RAO UES and Atomstroyexport, holds 34% in Inter RAO. Other shareholders are companies from Great Britain, the USA, Finland and Bulgaria. A meeting of Chimco's creditors is scheduled for September 30, 2005. The main creditors of the enterprise include Bulgargas and the National Electric Company, which have to decide which rehabilitation programme to back up: Inter RAO's or Novo Chimco's.
Source: Pari (15.09.2005)

Local heating utilities’ costs will jump by some BGN 65 mln this winter due to higher natural gas prices. This is the main conclusion in the report explaining the reasons for the new fuel prices, submitted for approval in the State Energy and Water Regulation Commission (SEWRC).
Source: Standart (16.09.2005)

During the next 10 years, the stability of energy supplies in Europe will strongly depend on the relationship between EU and Russia, the British Minister of Energy Mr. Malcolm Wicks announced in Moscow on Sept. 13. According to Mr. Wicks, the EU has mutual interest with Russia, which already meets 50 per cent of the natural gas demand in Europe. The establishment of a unified European energy market will relieve the trade within the community and will also significantly expand the potential market of the Russian natural gas, Mr. Wicks added.
Source: Banker (19.09.2005)

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)

In the wake of the hike in domestic natural gas prices requested by state-owned gas supplier Bulgargaz, the economy ministry has asked the company to provide information about its expenses, local gas consumption in 2004 and 2005 and local gas production and transit. The State Energy and Water Regulatory Commission will discuss today the 22.5% price hike proposed by Bulgargaz. The company motivated the move with the 52 lev increase in the price per 1,000 cu m of the natural gas it buys from Russia. The tariff adjustment came under scrutiny after major industrial gas consumers opposed the factors that have factored by Bulgargaz into the new price rate. Unofficial sources said economy minister Rumen Ovcharov met with representatives of big corporate gas consumers to hear their view. In the price hike proposal submitted to the regulator, Bulgargaz says 2005 consumption will reach 984 mln cu m. However, that target overshoots the actual consumption estimates which are for 845.2 mln cu m. If Bulgargaz is allowed to pocket the 40 mln levs it will be paid by Russia's Gazprom in transit fees for 2005, the requested price increase of 54 levs per 1,000 cu m could be reduce by 5-6 levs per 1,000 cu m. The finance ministry is amenable to the idea but said the initiative should come from the economy ministry.
Source: Dnevnik (27.09.2005)

Local trade unions and employers strongly oppose high fuel prices Trade unions and employers in Bulgaria are ready to sue the State Energy and Water Regulation Commission (SEWRC) for the increase in natural gas prices, the leader of the Confederation of Independent Trade Unions in Bulgaria, Zhelyazko Hristov, said at a meeting with representatives of the most affected sectors: metallurgical enterprises, fertiliser plants, producers of inert materials. The meeting was held just a few hours before SEWRC's closed-door session, which had to approve Bulgargas's proposal for appreciation of natural gas by 22.54% from October 1. However, the regulator did not take a decision on the issue, nor on the suggested increase in electricity prices for low- and medium-voltage users. Such a drastic raise will result in lay-offs and wage freeze; it will affect the cost prices of the products of energy-intensive sectors and the enterprises using natural gas as raw material, employers warned. The companies working on international contracts base on the old prices expect to suffer enormous losses. If the proposal is approved, both employees and employers will go to the streets, the trade union said. The drastic jump in natural gas prices will result in collapse in local metallurgy, although this sector is developing very well at the moment, Ms. Politimi Paunova, CEO of the Branch Chamber of Ferrous and Non-ferrous Metallurgy said. 37 per cent of the total consumption of natural gas in Bulgaria goes for this sector and when the price of the material becomes unfavourable, the company may choose to use cheaper energy sources, such as fuel oul and solid fuel. This will have negative effect on the environment and the companies won’t be able to meet EU ecological requirements. The prime cost of Kremikovtzi’s production has increased by 6 per cent due to higher natural gas prices, the member of the plant’s managing board Mr. Bojko Bojkov said. By the end of this year, the company will work at loss. The successful implementation of the investment programme is under threat, because at the time of its privatization, the price of fuel was BGN 170/1000 cu m, while now it has already reached BGN 280. Agropolychim is planning an 18-per cent increase in ready-produce prices, which means the prices of fertilizers on the domestic market will jump by BGN 35-40/t. This will result in higher grain prices – by over 6 per cent, and a 7 per cent rise in the price of bread, Mr. Vasil Alexandrov, CEO of Agropolychim said. The planned loss of the company under export contracts will increase to 50 per cent. A series of installations may be stopped. Similar forecasts were made by the Dimitrovgrad-based fertilizer plant Neochim. Kaolin JSC expects an annual loss of over BGN 1 mln due to higher natural gas prices and growing annual costs (this year, they are higher by BGN 200 000) due to the 5-per cent rise in electricity prices, mid-voltage. The company warned it might have to cut 150 jobs. The problem is that the market is not liberalized and Bulgargaz is a monopolist in the import of natural gas, Mr. Konstantin Stamenov from Stomana Industry summarized.
Source: Pari (28.09.2005)

"If Bulgargas' proposal is approved, the natural gas will hike from tomorrow with 52,84 levs (1euro=1.95levs) per 1,000 cubic meters and the new price of natural gas in Bulgaria will be by 7% lower than the cheapest price in Europe," Dimitar Gogov, head of department in Bulgargas, stated. The state-owned company proposes that the price of natural gas is increased as of October, 1. The price of the natural gas for consumers, which are directly connected to the net, will go up from 234,46 levs to 287,30 levs - VAT excluded, while for clients, which use natural gas from the distribution net, the price hikes from 242,18 levs to 295,02 levs - VAT excluded. Today, the Energy and Water Regulation State Committee (EWRSC) will announce if it accepts Bulgargas' proposal. The hike in the price of the natural gas is due to the increase of the price of gas delivered by Gasexport with 52,84 levs - from 214,73 levs to 267,57 levs. Bulgargas wants exactly the same increase.
Source: Standart (30.09.2005)

The State Commission for Energy and Water Regulation (SCEWR) affirmed a price hike of 18.5 per cent of the natural gas instead of 22.54 per cent, offered by Bulgargaz. Thus, the final price will be BGN 277 per 1000 cubic metres of the blue fuel. The Commission will announce today what reserves were found to prevent further hikes. From the beginning of 2004 till Sept 2005, all prices have grown with 200 per cent. Even with the latest changes, local natural gas prices are 7 per cent lower than the lowest in Europe, Mr Gogov said.
Source: Dnevnik (30.09.2005)

The national gas transmission system operator Bulgargaz SPJSC, signed a contract for the development of a work project for the liquidation of the drilling facilities located on the territory of the Chiren gas storage. The project is entrusted to a consortium of Bulgarian Drilling company Sp.JSC and Petrogaz Antika Ltd. – Sofia.The project is entrusted to a consortium of Bulgarian Drilling company Sp.JSC and Petrogaz Antika Ltd. – Sofia. The final aim is a safety isolation of the product gas-transmission horizon and lack of migration of natural gas to the upstanding collector rocks to be achieved.The order is worth BGN 565 000 with VAT excluded.
Source: Dnevnik (30.09.2005)

A request for canceling the decisions taken by the general meeting of creditors of Nova Plama was received in Pleven District Court, the court’s spokeswoman Ms. Silvia Krasteva said. The owners of the insolvent company think that the general meeting held on 9 September was held with lapsed procedure and has made decisions contradicting the clauses of the Commercial Act. Also, the voted regulations were in contradiction with the Trade Code’s clauses. The sitting of the court on Nova Plama’s request, is expected to be held this month. The court members are not specified yet. On Sept 9, Nova Plama’s creditors decided the refinery to be sold completely. In case no buyers show up, the selling will be made in parts.
Source: Monitor (03.10.2005)

The owners of Nova Plama asked the decisions of the general meeting of the refinery’s creditors to be canceled. The bankrupted company’s owners stated that the meeting held on September 9, was held under a vitiated procedure. on September 9, the creditors of Nova Plama decided on selling the refinery as a whole, and is case there are no buyers – as self-contained parts. Refinery’s major creditors are the State Receivables Collection Agency, seven banks, Bulgargaz, and the National Electricity Transmission Company (NEK).
Source: Sega (03.10.2005)

The general meeting of creditors of insolvent fertilizer company Chimco, has chosen the recovery program prepared by Novo Chimco JSC. Representatives of the creditors including Bulgargaz and NEC were also acquainted with the program of the main shareholder at the moment – Inter RAO Bulgaria JSC. We were chosen because of the guaranteed delivery of cubic metres 5000 mln natural gas through the Russian company Gazexport and the access to international markets through the Swiss company Indargo, the Executive Director of Novo Chimco, Mr. Leonid Berenbaum said.
Source: Pari (03.10.2005)

Cheap natural gas imported from Russia is the main thump with which the recovery plan of Novo Chimco won the goodwill of the creditors of the Vratsa-based fertilizer factory, thus eliminating from the battle its sole rival Inter RAO-Bulgaria. Half of the capital of Novo Chimco is owned by Centrix Energy-Geneva, a subsidiary of Gazexport, which on its side is the trading company of Russian giant Gazprom. Novo Chimco produced a document signed by the Executive Director of Gazexport, Alexander Medvedeev. The document engages the powerful gas distributor to especially deliver 500 million cubic meter natural gas annually for the production of Novo Chimco. The chair of the Board of Directors of Novo Chimco, Andrei Semerdjiev, forecasts that the production will start on the New Year's Eve, initially with a 25%-load of the production capacities.
Source: Standart (04.10.2005)

For several months NEC has been selling rest homes, land plots and buildings worth millions of leva, without organizing any auctions. The state-owned company does not apply the Public Procurement Law, but is choosing the buyers through negotiations instead. Among the real estates for sale are: Momina Salza - Borovets, two buildings, close to Socolets hotel, together with a land plot of 2.5 decares, bungalows around Batak lake, also a rest home together with a land plot of 5 decares in Sunny Beach resort. For the time being, the exact list of the real estate properties for sale, as well as what was sold by now and to whom, remains a secret.
Source: Dnevnik (10.10.2005)

The company Novo Chimco whose rehabilitation programme was approved at the meeting of Chimco's creditors on September 30 doesn't want to waste time and intends to enter as a tenant in the Vratsa-based enterprise (until now its major shareholder Indargo Bulgaria was its tenant, but failed to start production due to various reasons). Re-employment of the workers from Indargo Bulgaria in Novo Chimco has even started and 278 people have already received their new labour contracts. On October 5 alone, 140 former employees of the chemical plant filed applications for jobs. According to Novo Chimco's plans, 650 people will be employed till the New Year. By then the chemical enterprise should be operating at 25% of capacity. Aggregate monthly production of ammonia and carbamide will reach 36,000 tons. The rehabilitation programme projects that Chimco should begin working at entire capacity in the 18th year after its commissioning. According to the Executive Director of Indargo Bulgaria, Leonid Berenbaum, however, that could become a fact as early as in the end of the third year. New installations and equipment should be purchased for the purpose and a lot of funds should be invested for satisfying ecology standards. Investments of BGN17.1MN have been projected in the rehabilitation plan for the first year. The hiking of natural gas prices is not much of a problem for the new, old tenants of Chimco's production capacities, as they have already signed a contract with Gazexport through the Swiss company Centrics, which, on its part, has acquired 50% of Novo Chimco's capital. The remaining shares are distributed among Indargo Bulgaria (30%) and the managerial team (20%). If fulfilment of the rehabilitation programme begins, Chimco's liabilities of BGN85.7MN will be paid off. Novo Chimco has proposed to pay half of its debts to its top creditors, Bulgargas and the National Electricity Company within 15 years, after a 3-year grace period. Under the proposal, the other half of the plant's liabilities are to be written off. The debts to the State will be repaid immediately after terminating the company's insolvency. The reason to ask for writing off half of Chimco's liabilities to the state-run monopolists is that very important assets, such as the thermoelectric power plant, the installation for chemical treatment of water, the railway station, the Varna terminal, etc., have been expropriated from the company. Currently, Chimco is holding negotiations in order to restore its possession on the thermal power station which is located on its territory. The transfer of the trade enterprise Chimco to Novo Chimco should be effected within a month after suspending the insolvency procedures against the fertilizer manufacturer. This has been projected in the already approved rehabilitation plan. Thus, practically, the moment when implementation of the stabilization programme begins, Chimco AD will remain in the past (the small investors, as well as the bigger shareholders like the Cypriot offshore company ABCT Trading Ltd., and Inter RAO Bulgaria will remain with stocks which will be worth a zero) and all its assets will go into Novo Chimco's hands. In fact, that scheme is well-known in Bulgaria in recent years. The green light for the rehabilitation plan, however, will be given only if the court that will extend a ruling on the plant's insolvency does not accept the arguments of Inter RAO Bulgaria, appealing against the decision of the meeting of creditors of September 30. The motive of the appeal is that at the meeting the creditors voted for accepting an evaluation of BGN140MN for Chimco's assets. According to representatives of Inter RAO Bulgaria, there was not such an item on the agenda and it should not had been discussed. The ruling of the Supreme Cassation Court on the fertilizer works' bankruptcy is expected as well by end-October. If the supreme magistrates confirm the ruling of their colleagues from the regional court (who announced insolvency procedures against Chimco) Novo Chimco will get the chance to fulfil its plans. Otherwise, the plant's management will be undertaken by Chimco's present shareholders. Meanwhile, representatives of Novo Chimco announced that the Executive Director of Inter RAO Bulgaria, Roman Miretski, was expelled from Bulgaria. The information, however, was flatly rejected by Inter RAO.
Source: Banker (10.10.2005)

The 30-km long initial gas-supply network for the town of Pavlikeni has been constructed, as well as the 8.5-km section starting of the highway gas conduct, the CEO of Pavgaz JSC Mr. Vladislav Stoyanov said. Currently there are only completing works performed at the network. The initially announced deadline of October 15 for launching the gas into the town however will be broken because of the uncompleted construction of gas-measuring station and a small section. The construction is assigned to the state-owned company Bulgargaz. Besides Pavlikeni, the village of Butovo will be also supplies with gas at this initial stage. The biggest industrial consumer of the natural fuel – the ceramic plant Badeshte-Butovo is placed in the village.
Source: Yantra - Veliko Tarnovo (14.10.2005)

Bulgarian industry may save between BGN 1.2 billion and BGN 1.4 billion if it take measures to modernise the heating and insulation systems in public, residential and industrial buildings, said Rumen Ovcharov, Minister of Economy and Energy. A detailed plan for these measures will be presented by the deputy ministers Lachezar Borisov and Valentin Ivanov at the end of January 2006. Talks between the Government and representatives of the oil refinery LUKoil Bulgaria will be initiated to discuss options for reduction of the petrol prices for end-consumers.
Source: Pari (17.10.2005)

In a bid to dilute the economic impact of the hike in regulated gas prices, the Bulgarian energy minister has proposed to allow state-owned gas supplier Bulgargaz to retain in full the 45 mln levs in revenues it is expected to be paid in '06 by Russia's Gazexport for the transit of gas to Turkey, Greece and Macedonia. At present, Bulgargaz is allowed to pocket only 30% of the transit fees. If the proposal is adopted, domestic natural gas prices could be cut by 14 levs per 1,000 cu m. The current price is 284.63 levs/1,000 cu m.
Source: Dnevnik (17.10.2005)

After the creditors of the Vratza-based fertilizer plant Chimco approved the rehabilitation plan proposed by Novo Chimco, Vratza’s district judge Ms. Tzvetana Mihaylova also confirmed the document. Novo Chimco submitted its rehabilitation plan on 30 September. Back then, the General Meeting of Creditors rejected the rehabilitation plan submitted by the major shareholder in Chimco – Inter RAO Bulgaria JSC, owner of about 34 per cent of the enterprise, choosing to trust Novo Chimco due to its guarantee to deliver 500 000 000 cu m of natural gas a year. The gas will be delivered directly to the fertilizer maker through the Russian company Gazexport. Another reason for the decision was the fact that Novo Chimco guaranteed international markets through the Swiss company Indagro.
Source: Duma (18.10.2005)

The subsidiary of Bulgargas – Bulgartel officially inaugurated its new office in Sofia’s Dianabad district. The communication company uses the free capacity of the optic cables of the gas company to develop its own business. It was registered a year ago and is already operating.
Source: Pari (31.10.2005)

This year, the natural gas consumption has risen by 18 per cent and the transit - by 17 per cent, the minister of economy and energy, Mr. Roumev Ovcharov, said at the opening of the forum. Bulgaria has exported a record quantity of electricity. Bulgaria's domestic consumption has increased by 2 per cent, and the rise in Turkey and Romania has been 7 and 4 per cent, respectively. The high petrol prices should stimulate a better energy efficiency of the local economy, minister Ovcharov added.
Source: Standart (02.11.2005)

Italian Rimini Gas will allocate BGN 35 million to build the gas delivery network of Kazanlak, central Bulgaria, town mayor, Stefan Damyanov said. He pointed out that in 2005 2,200 metres of pipes have been installed. The total project is to end in two and a half years. At the final stage, the nearby municipalities of Maglizh and Nikolaevo as well as other settlements in the region will be connected to Kazanlak's network. Bulgaria's gas supplier Bulgargas will invest BGN 1.25 million in the project development for the pipes' route. Next year the pipe will reach the local heating company which will cut the prices significantly.
Source: Pari (09.11.2005)

Natural gas will not become cheaper in 2006, Bulgargaz’s CEO, Mr. Kiril Gegov announced yesterday in front of the parliamentary energy commission. The price cannot be cut at least in the first half of the year unless the dollar exchange rate falls down rapidly, the CEO added. Recently, after approving the price rise of the blue fuel, causing higher cost of the central heating too, the chairman of the State Commission for Energy and Water Regulation, professor Konstantin Shushulov forecast that by the end of this year a reduction in the gas price could be expected if oil price goes down.
Source: Sega (17.11.2005)

Bulgargaz will examine the opportunity of buying a land plot for the construction of a new building for its new company Bulgargaztransgaz, which will be in charge of the local network maintenance and gas transit. The monopolist’s schedule envisages this as part of the restructuring of the company’s activity. The total investment work will take nine months. Bulgargaz has to receive permission from the State Commission for Energy and Water Regulation (SCEWR) for the planned restructuring. The separation of a gas-trading company and a transmission company has to be finalized by 2006, but Bulgargaz is waiting for the European Commission’s standpoint, so as to postpone the establishment of the two companies until 2010. Then, the long-term contract for supply of natural gas from Russia expires and the gas-distribution network in Bulgaria will be connected with the one of the EU.
Source: Dnevnik (21.11.2005)

The National Social Security Institute's Top 50 of the most law-abiding employers with personnel between 50 - 100 employees, insuring a total of 4031 people with average insurance income of BGN 892 during January-September 2005 48 JSC Information service – Plovdiv office – Plovdiv
Source: Other (24.11.2005)

The National Social Security Institute's Top 50 of the most law-abiding employers with personnel between 100 - 250 employees, insuring a total of 9959 people with average insurance income of BGN 807 during January-September 2005
Source: Other (24.11.2005)

The National Social Security Institute's Top 50 of the most law-abiding employers with personnel between 250 - 500 employees, insuring a total of 20533 people with average insurance income of BGN 655 during January-September 2005. The company is included in the list. 7. Zlatna Panega Cement JSC - Zlatna Panega 9. Information services JSC - Sofia 48. Holcim Bulgaria JSC - Beli izvor
Source: Other (24.11.2005)

Sofia’s heating plant Toplofikacia will report a loss of BGN 21 mln in 2006 if the natural gas’ price rises by 10 per cent, the company CEO, Mr. Valentin Dimitrov said after a session of the Sofia municipal commission of infrastructure. Mr. Dimitrov presented an analysis of natural gas’ price movement and of the financial condition of the municipal company. The report says a soaring hike in the fuel’s price by 35 percent would induce losses of BGN 65 mln. The government holds 42 per cent of the heating plant’s shares. Natural gas accounts for some 72-75 per cent of the company’s expenses.
Source: Dnevnik (30.11.2005)

The six state-owned heat supply companies – based in Plovdiv, Rousse, Varna, Sliven, Pernik, and Sofia, reported a loss of BGN 4.3 mln for the nine-month period of 2005. For the same period 2004 they reported a profit of BGN 2.8 mln. This is concluded in the report for the status of the heat supply companies prepared by the Ministry of Economy and Energy, which was put forward in the energy commission yesterday. The companies accumulated losses because of the ceased subsidies for sales to household consumers and because the regulatory commission did not allow them to increase the prices.
Source: Sega (01.12.2005)

Austrian company VA Tech Hydro GmbH&Co is exploring the opportunities to build a co-generation facility on the site of the Sofia-based Lyulin thermal power plant (TPP), a senior official from the energy ministry said on Thursday, December 1. The Austrians are also interested in building a similar facility on the site of the Zemlyane TPP, also in the Sofia area. The facility will most likely have a 50MW capacity. Under Bulgarian law, its output will be purchased by the National Electricity Transmission Company (NETC) at a preferential price. The final decision whether to grant VA Tech permission to go ahead with its plans lies with the Sofia municipal council and the energy ministry. The state holds 42% of the shares of the heating utility of Sofia, the remainder are municipal property. The Austrian company has already been contracted by the state on another project, for the construction of the 220 mln euro Tsankov Kamak hydro complex which is due for delivery in 2009. The project employs a carbon credit scheme agreed with Austria. The Austrian government is to buy out 228,000 tons carbon dioxide emissions from Bulgaria annually at $10 per ton of reductions. Horizon Energy Development of the U.S. and Japan's Mitsui, too, have announced interest in building a co-generation facility in Sofia. Horizon Energy Development, a subsidiary of National Fuel Gas, has offered to build a 100MW facility on the site of the Sofia TPP which is part of Sofia's heating utility. For three years now the U.S. company has been negotiating a long-term contract with the NETC, seeking that the arrangement last for at least five years and that it contain an option for two extensions with an adjustment of the tariff. Japan's Mitsui, which refurbished units 1 through 4 of Maritsa Iztok 2 TPP, is conducting a feasibility study for a co-generation facility. The project is part of the conditions under which the state provided guaranties for the financing of the power plant's rehabilitation.
Source: Dnevnik (02.12.2005)

According to Heat Supply-Sofia’s estimation, four new Thermal Power Plants with electricity and thermal power mixed production will save up to 50 per cent from the central heating bills in Sofia. With one and the same quantity of natural gas, two products could be produced – thermal power and electricity. The cost price of the sold electricity will tumbled rapidly, Heat Supply’s CEO, Mr. Valentin Dimitrov estimated. More than 10 western companies applied for construction of the four new facilities.
Source: Monitor (07.12.2005)

State-owned gas distribution company Bulgargaz has budgeted BGN63 mln for investment in the expansion and modernisation of its transmission infrastructure. The gas company ingested BGN45 mln of investment this year. The mayors of Bansko, Kardjali, Silistra and Ihtiman have asked Bulgargaz to integrate their municipalities in its transmission network.
Source: Dnevnik (14.12.2005)

Heat Supply-Kazanluk, owned by AKB Fores, has to proceed to natural gas as to keep its subscribers and to continue the company’s service activity. Thus, Heat Supply-Kazanluk could develop a network to the towns of Kazanluk and Haskovo, the chairman of State Commission for Energy and Water Regulations (SCEWR), Mr. Konstantin Shoshulkov consider. Now the company use black oil and wants to stop this service but for now the ministry of economy and energy does not support it. The black oil’s high price forms the heat supply cost in town, which is one of the highest in the country.
Source: Dnevnik (14.12.2005)

Bulgargaz has lodged a proposal for higher prices of natural gas in Bulgaria after January 1, 2006, company representatives said. The reasons for the move were the appreciation of the gas on the world market and the U.S. dollar exchange rate. This was most probably the reasons pointed out by the president of Russia's Gazexport, Alexander Medvedev, who was on an unofficial visit to Sofia in early December. Medvedev then allegedly asked for the natural gas prices to be raised by 30 USD per 1,000 cu. m.
Source: Pari (19.12.2005)

Heating in Bulgaria will appreciate if Bulgargas's proposal for increasing natural gas prices by 12 to 15% from January 1, 2006 is accepted. The rise in natural gas prices cannot be avoided, because it is demanded by Russia's Gazexport, Bulgargas said. According to estimations of the Bulgarian company, natural gas prices will jump from BGN 275.91 to BGN 311.21 per 1,000 cu. m. An analysis will be made to see if heating utilities can compensate the price increase by shrinking their profit margin and cutting down on some repair expenditure in the first quarter of 2006, State Energy and Water Regulation Commission (SEWRC) chairman Konstantin Shushulov said. Natural gas makes up 70 to 75% of the heating price. The commission will do its best to prevent a heating price rise from January 1. If necessary, the tariff will increase within the 6% range, Shushulov said. According to SEWRC data, only 11% of households in Bulgaria use heating. A few years ago customers of the utilities were 18% of the population.
Source: Pari (21.12.2005)

Business Community Rises Voice Against Gas Price Hike The ungrounded hike in the price of natural gas will deal a hard blow to the entire Bulgarian economy. The proposed rise of 12,4 percent will lead to a substantial increase of the production costs and a forced reduction of output in metallurgy and fertilizer industry, reads the official letter to the minister of economy and energy, Mr. Rumen Ovcharov and the chairman of the State Commission for Energy and Water Regulation, Mr. Konstantin Shushulov. The letter is signed by executive director of fertiliser plant Agropolychim, Mr. Vassil Alexandrov, and member of the managing board of the Metallurgy Branch Chamber, Mr. Anton Petrov.
Source: Standart (23.12.2005)

Natural gas will increase on average 7.15% as of January 1, 2006, while the heating prices will remain unchanged, State Energy and Water Regulation Commission (SEWRC) decided. In the next quarter, Bulgaria will have a price of BGN 296.70 per 1,000 cu m (VAT excluded) as compared to a price of BGN 276.91 that has been valid up to now. The actual rise thus will come to BGN 19.79 for 1,000 cu m,as compared to a rise of BGN 34.3 as asked by the country's gas transit company Bulgargaz. 'I don't expect gas price increase in the second quarter of 2006,' SEWRC CEO Konstantin Shushulov said. Heating companies will have to compensate a 3.0% increase of the natural gas prices from own funds.
Source: Pari (27.12.2005)

Bulgaria could lose as much as $1 bln in the period up to 2010 if the agreement for the transit of natural gas with Russia's Gazprom is renegotiated, Bulgarian economy minister Rumen Ovcharov said. Gazprom has requested a reduction in the transit fees it pays to Bulgargaz - the national gas transmission system operator, the owner of the transmission network and the network for the transit of a natural gas, and a new, market-based method for their calculation. The agreement between Gazprom and Bulgaria, which expires in 2010, fixes the charge at $1.65 for the transit of 1,000 cu m per 100 km. The bulk of the revenues from the transit charges are funnelled by Bulgargaz to the state budget, a remittance seen at $45 mln in 2006. As part of the deal, Bulgargaz is entitled to certain amount of supplies of natural gas at reduced prices. The Russian company wants to pay all transit charges in cash. The transit volume may decrease if the demands of the Russian side are granted, said Ovcharov. The review of the gas transit agreement was suggested a year ago during the visit to Bulgaria of Gazprom executive Alexei Miler. The issue resurfaced once again during last month's unofficial trip to Bulgaria of Alexander Medvedev, director general of Gazprom subsidiary Gazexport. In related news, Bulgaria's State Energy and Water Regulatory Commission decided last Friday to raise domestic natural gas prices by 7.15% effective January 1, 2006. The adjustment approved by the regulator falls some way short of the 12% hike requested by Bulgargaz.
Source: Dnevnik (27.12.2005)

Bulgaria's Cassation Court stopped the liquidation procedure for the Pleven-based Plama refinery. The bankruptcy proceedings were opened in 1996 and a recovery plan was initiated by the unknown Evroenergy holding following a government's decision. After a decade of scandals, deliberate examples of syphoning, and several managers going to prosecution, Cassation Court stopped the bankruptcy proceedings on the grounds of the fact that the petition was signed by Yorset Holding, which is a creditor with 14.83% of the total claims against Plama, shortly bellow the 15% requirement of the law. The court refused to take into account that the second largest creditor of Plama, DZI, with 7.9% of the claims lately joined the original petition of Yorset Holding. According to experts, however, the supremacy of the law's requirement for speed when the court is viewing bankruptcy trials has thus not been met. Plama has not paid even a penny to its creditors and ex-employees for the last five years and the Supreme Cassation Court thus delays the procedure.
Source: Pari (29.12.2005)

The gas war between Russia and Ukraine may leave thousands Bulgarian households without central heating. The central heating companies in Bulgaria will be the worst affected by the expected lower supplies of natural gas. An economic regime is provided in the Bulgarian Energy Law, if its introduction is necessary. It is the last possible stop-gap expedient in case of an energy crisis. "The Sofia Central Heating Company has 375,000 subscribers and uses three hundred million cubic meters of gas a year," said Ilko Yotsev, Chairman of the Directors' Board of the Sofia Central Heating Company. The districts of the capital city will be left without central heating, if the pressure in Bulgaria's gas transmission network goes down by fifty percent. "We have an emergency operative plan in case of an energy crisis," said Mirko Ugrinov, CEO of the Plovdiv Central Heating Company. He explained that the company may switch to black oil if the supplies of natural gas are reduced, but this is only a temporary stop-gap measure, because black oil causes extensive air pollution and is far more expensive than natural gas. "We expect no problems with the supply of natural gas in the weekend," said Kiril Gegov, CEO of Bulgargaz. He said that all customers of Bulgargaz were receiving the quantity of natural gas they had required. "There is no drop in the transit of natural gas through Bulgaria to Turkey, Greece and Macedonia," Gegov added. Bulgaria's national gas transmission system operator supplies its customers with about three billion cubic meters of natural gas per year and transmits fourteen billion cubic meters of natural gas to Bulgaria's neighbors.
Source: Standart (03.01.2006)

Natural gas prices remain unchainged for now The prices of natural gas in Bulgaria will remain unchanged, despite concerns that the gas war between Russia and Ukraine may affect this country, sources from Bulgargaz said. In 2006 Bulgaria may pay between USD 230 and USD 260 per 1,000 cu. m, the spokesman of Russia's Gazprom, Sergey Kupriyanov, said. Gas supply in Bulgaria is normal for the time being, we have reserves for three months, Dimitar Gogov of Bulgargaz said. During the Christmas and New Year holidays consumption was lower, because some of the big industrial consumers did not work. The nearly five-fold increase in natural gas prices in Ukraine prompted different reactions in Bulgaria. Steelworks like Kremikovtsi and Stomana Industry have been insisting for years on protective measures against the dumping imports of ferrous metals from Ukraine, which are 10 to 30% cheaper than the Bulgarian products. Other metallurgical enterprises, however, use mainly import products and Ukraine holds 70% of the market here. The more expensive gas in Ukraine will appreciate the products of local fertiliser makers, too. This will not happen in Russia, which is expected to flood the Bulgarian market with fertilisers. According to knowledgeable sources, Russia's Gazexport insists on a revision of the contract for transit of natural gas to Turkey, Greece and Macedonia via Bulgaria. The company suggests paying the transit in cash, rather than in gas. Under the current agreement, for each 18 billion cu. m of natural gas transited to other countries, Russia gives Bulgaria 1 billion cu. m for domestic consumption. For the first six months of 2005 gas transit to Turkey through Bulgaria amounted to 7.793 billion cu m; Greece received 1.328 billion cu m, Macedonia, 45 million cu m. The total amount of gas transit increased by 24.47%, year on year. Bulgargaz and Gazexport have a long-term contract - until the end of 2010 - and there are no reasons to revise it, Bulgarian experts commented. The fact that transit is paid in natural gas allows Bulgaria to control domestic prices and prevent shock increases. Russia has not presented an official request for a revision of the transit contract, the Bulgarian ministry of economy and energy said. Following a recent meeting with Gazexport officials, minister Rumen Ovcharov said the demands of the Russian company were absurd.
Source: Pari (04.01.2006)

For the first six months of 2005 natural gas consumption in Bulgaria increased by 7.86%, year on year, Bulgargaz data show. The biggest consumers were chemical enterprises (730 million cu m), followed by the companies in the energy sector (656 million cu m). Electricity distribution utilities used 139 million cu m of gas, up by some 30% compared with the corresponding period in 2004. The metallurgical industry consumed 214 million cu. m, the glass and porcelain industries, 60 million cu m, construction material producers, 38 million cu m. The other sectors of the economy consumed 139 million cu m of natural gas. Under the Energy Act, limited supply is introduced in case of need; the last to be affected by such a measure are the consumers without alternative fuel supply options, Dimitar Gogov from Bulgargaz explained. A possible reduction in gas supplies will depend on consumption both in Bulgaria and in other countries, he explained. The total capacity of the gas storage facility at Chiren is 400 million cu m.
Source: Pari (04.01.2006)

The agreement on supply of Russian natural gas to Bulgaria will not be revised; it cannot be revised, Gazprom's press office said, commenting on information that the Russian gas monopolist will raise the price of the fuel for Bulgaria. Gazprom strictly observes all its foreign business obligations and nothing is to be changed, the company stated. By saying that the gas price for Bulgaria, Romania and Hungary will range between USD 230 and USD 260 per 1,000 cu. m in 2006, Gazprom's spokesman Sergey Kupriyanov meant that the market price of natural gas could reach such levels. The day before Gazprom's statement, Dimitar Gogov of Bulgaria's Bulgargaz commented that Kupriyanov's words were probably misinterpreted. According to PARI daily's information, however, in early December the deputy chairman of Gazprom and CEO of Gazexport, Alexander Medvedev, suggested a revision of the terms of transit envisaged in the gas supply agreement of 1998 between Gazprom and Bulgargaz at an unofficial meeting with minister of economy and energy Rumen Ovcharov. Under the agreement, Gazprom pays the transit in gas for Bulgaria. The fact that the two parties have a long-term contract - until 2011 - makes possible negotiations tougher, since currently the transit terms are advantageous for Bulgaria. Undoubtedly, Gazprom will try to renegotiate the agreement of 1998.
Source: Pari (05.01.2006)

Bulgaria to lose USD230m a year from Gazprom Russia’s Gazexport is pushing Bulgargaz to pay USD230-260 for the delivery of each 1,000 cubic meters of natural gas. Now the price is USD83. This is the price of the fuel, which Bulgaria receives instead of transit charges for the transportation of some 14 bln cu m of gas to Turkey, Greece and Macedonia. The new price request emerged from a report, which the national gas transmission company (Bulgargaz) has sent to the Bulgarian government. The change in the gas price shall be put into effect by amendments and annexes to the contract between Bulgargaz and Gazexport on the Russian natural gas transit through our country. The agreement was signed in April 1998. Bulgaria receives 1.4 bln cu m of gas (about 42 percent of the country’s consumption) as barter instead of transit charges. Estimates show that Bulgargaz and end consumers in Bulgaria will lose some USD230m a year or USD1.15 bln for the five years of the contract until 2010. If Bulgargaz yields to the pressure, the price will jump by about BGN110 for 1,000 cu m or by 30 percent. The consequences for the Bulgarian economy will be catastrophic. Firstly, central heating bills will rise by at least 20 percent. Besides the shock for the people, the public expenditure on hospitals, schools and other public administration buildings will automatically soar. The price hike will boost the operating expenses of Kremikovtzi, chemical and glass plants. This will result in non-competitive prices of their production and as a final effect – bankruptcies.
Source: Standart (06.01.2006)

Nabucco Project to be stepped up Alternative energy sources cannot be developed by a single country, even less by a country like Bulgaria. They have to be developed in an all-European context and I think the European Union is already aware of it, Bulgaria minister of economy and energy Rumen Ovcharov said Thursday. A meeting of the ministers of energy is to be held soon to discuss the problem, he added. Bulgaria is an active party in the search of a solution. Sofia does not accept the new prices for transit of natural gas via Bulgaria. The rates cannot be changed under the contract with Gazprom until 2010, Ovcharov explained. Bulgargaz does not receive cash but 1 billion cu. m of gas for the transit of 18 million cu. m through Bulgarian territory. This allows it to regulate gas prices on the domestic market. An alternative that is already at an advanced stage is the Nabucco project for transit of natural gas from Iran and the Caspian region to West Europe. Nabucco Study Company was set up in June 2005 by the gas companies of Turkey (Botas), Bulgaria (Bulgargaz), Romania (Transgaz), Hungary (MOL) and Austria (OMV Gaz). These are actually the countries named by Russia’s Gazprom a few days ago as not paying market prices for the gas supplies. Now the project will be accelerated. Nabucco is included in the EU programme for Trans-European Network (TEN). The EU finances the feasibility study and analysis of the project. Nabucco Gas Pipeline International Ltd. is the company responsible for the development of the project’s financial concept and for the coordination of its implementation. The Nabucco gas pipeline will be 3,300 km long and will cost EUR 4.5 billion. Some 400 km of the pipe will pass through Bulgarian territory, which will cost about EUR 400 million. If construction begins in early 2008, the project has to be completed in 2010.
Source: Pari (06.01.2006)

Bulgaria may sue Russia's Gazprom if it breaches the agreement of 1998 and raises natural gas prices for Bulgaria, ex vice premier Evgeniy Bakardjiev said. However, the issue is unlikely to be referred to the court, he added. Late last week Bulgargaz sent an official refusal to Gazprom's request for a revision of the transit agreement between the two companies. The same stand had been voiced by minister of economy and energy Rumen Ovcharov. Even now the prices we pay for natural gas are higher than those charged by the Baltic republics. Nobody can accuse us of not paying at market prices, the minister said. At the end of last year Gazexport's director Alexander Medvedev was on an unofficial visit to Bulgaria to insist on a revision of the contract. This is unacceptable for Bulgaria, Bulgargaz's letter reads.
Source: Pari (09.01.2006)

Bulgaria and the rest of the countries, included in the Stability Pact of Southeast Europe, are going to sign a gas supplying contract, the special coordinator of the pact, Mr. Erhard Busek announced. After the hikes of the gas prices in Europe, there is more willingness in the region to work on this matter. Turkey announced it is ready to start operating the process. Among the important projects is the international gas transmission project Nabuko, Mr. Busek pointed out.
Source: Monitor (12.01.2006)

Citigas Bulgaria, owned by Italy's Gruppo Societa Gas Rimini, will start the gasification of city of Kazanlak, Southern Bulgaria. Kazanlak is part of the Trakia gasification region where Gruppo Societa Gas Rimini has been licensed to deploy gas supply infrastructure. The launch of the civic gasification will allow the district heating utility based in Kazanlak to switch from fuel oil to natural gas. The Kazanlak municipality has vowed to complete the eminent domain proceedings for the private properties affected by the project in the next 8 weeks. Bulgarian energy minister Rumen Ovcharov has suggested to Gruppo Societa Gas Rimini to go ahead with the Kazanlak gasification despite the fact that the award of the Trakia permit to the Italian company is still being contested in court. Konstantin Shushulov, chairman of the State Energy and Water Regulatory Commission, said the regulator, in the event that Gruppo Societa Gas Rimini is deselect as the permit winner, will make sure the new investor buys the infrastructure installed so far by the Italian company. Gruppo Societa Gas Rimini is in talks to acquire the Kazanlak heating utility, said Shushulov. The utilities based in Kazanlak and Yambol were sold on the Bulgarian stock exchange in March 2004 to AKB Fores. Trakia is one of the eight districts into which Bulgaria’s territory has been zoned for the award of contracts to build networks for household and industrial use of natural gas. The Trakia region encompasses 39 municipalities, including five where gas licences have been awarded. The region is rich in industrial gas consumers but as much as 71% of the households don't have central heating. The only exceptions are the municipalities of Kazanlak and Plovdiv which have district heating companies.
Source: Dnevnik (13.01.2006)

Ovcharov asks business community about the price of gas Bulgarian Minister of Economy and Energy Rumen Ovcharov and the largest consumers of natural gas will discuss the country's supply with natural gas. Representatives of Bulgaria's national gas transit system operator Bulgargaz will also take part in the talks. The meeting is occasioned by the demand of Gazexport (Russia) for amendments to the gas transit contract, which would regulate higher wholesale prices of natural gas for Bulgaria. "The state and the business community will come up with a common stand on the problem," Ovcharov told Nova TV. Representatives of the central heating companies, which consume eighty percent of the Bulgarian natural gas, will also be present at the forum, along with their colleagues of LUKoil Bulgaria, the Neochim and Agropolychim mineral fertilizers plants, the Kremikovtzi smelter and Stomana steel works. At the end of December 2005, Gazexport sent a letter to Bulgargaz, in which they demanded that the prices of transit of Russian natural gas through Bulgaria should be re-negotiated. Bulgargaz replied that the proposal was unacceptable. Shortly before the end of 2005, the wholesale price of natural gas went up by eighteen percent to BGN296 (EUR151) per 1,000 cubic meters (VAT excluded).
Source: Standart (16.01.2006)

Talks between Bulgargaz, Gazprom get tough Russia’s Gazexport continues to insist on a change in the current agreement with Bulgaria and is unwilling to alter its demands for a revision of the gas transit agreement with Bulgargaz, knowledgeable sources said. Currently Gazprom's subsidiary pays the transit via Bulgarian territory in natural gas, rather than in transit fees. The Bulgarian company pays a price of USD 83 per 1,000 cu m for the fuel, compared with USD 257 per 1,000 cu m for other gas supplies. In exchange for the new contractual terms, Gazexport is ready to sign an agreement on increasing the transit amounts via Bulgaria to Turkey, Greece and Macedonia and to participate in the construction of transport facilities to Serbia and Montenegro. So far Bulgargaz has refused to invest in a gas pipeline to Serbia, because the transit amounts have not been guaranteed. In early January Bulgaria officially refused to revise the terms of the long-term agreement, which expires on December 31, 2010. Meanwhile it emerged that the supply of natural gas from the deposit at Chiren, Vratsa municipality, to Bulgarian consumers had nearly tripled at the request of Bulgargaz. Formerly supplies amounted to 300,000 cu m a day. The volume of the deposit is some 3 billion cu m, which can cover consumption for a few months.
Source: Pari (16.01.2006)

Government and business community to decide together on gas price The state and the big corporate consumers of natural gas will determine together the blue fuel’s price movement. This was agreed yesterday during a meeting of the minister of economy and energy, Mr. Roumen Ovcharov, and representatives of Bulgargaz and the companies. The first serious changes in the gas price are expected in 2007–2008, when the resources of the Galata field will be exhausted and excise duty on the gas price may be introduced. The excise however is not going to affect the price seriously. A price shock is expected in 2011, when the contract with Russia’s Gazexport expires. Then Bulgaria is likely to start buying natural gas at market prices. Minister Ovcharov advised the companies to conform their business plans to the expected price shock after 2010. There were different options for its mitigation, Mr. Roumen Ovcharov pointed out. They supposed the price to be raised in advance and deferment of the hike after 2010. Working groups including representatives of the government and the companies will draft joint standpoints on these issues. The meetings will be held regularly. The next one will be after a month when the business is expected to submit its joint opinion.
Source: Standart (17.01.2006)

Two factors could affect the natural gas’ price after 2007. The first one is that it is expected the finding Galata’s sources to finish by the mid-2007, which up to now supplies 14% of the local natural gas needs. After Bulgaria’s EU accession, it is possible a minimum excise on the natural gas to be imposed to Bulgaria. This was discussed yesterday during the closed for journalists meeting between experts from the ministry of economy and energy, Bulgargaz and the biggest gas consumers.
Source: Pari (17.01.2006)

Black Sea Technology Company (BSTC), the local subsidiary of Italy's AMGA Azienda Multiservizi S.p.A, has completed the installation of another 1,000 m of gas mains in Pleven, Northern Bulgaria, coupling the network with the transmission grid of gas distributor Bulgargaz. At end-2005, the company had 107 household and 9 industrial subscribers. BSTC has deployed a total of 42 km of gas mains in Pleven so far.
Source: Dnevnik (17.01.2006)

During the first day of PM Sergei Stanishev's visit to Turkey it became clear that Bulgaria would renew its electricity exports for Turkey. The Bulgarian PM and his Turkish counterpart Recep Tayyip Erdogan had a one-to-one conversation. Turkey stopped importing electricity from Bulgaria in 2003. "Now the country is ready to restore them," Stanishev announced. "We have the potential to export electricity for Turkey," The Bulgarian PM added. Erdogan described Stanishev's visit as a new period in bilateral relations. Turkey expressed its will to follow the example of Bulgaria which is successfully nearing its EU accession. Erdogan stressed the important role of the emigrants for the friendly relations between Turkey and Bulgaria. He addressed the Bulgarian PM with the words: my friend and counterpart Sergei Stanishev. "There aren't political problems of any kind between the two countries and this favours the development of the good relations between them," Erdogan accentuated. Turkish investments in Bulgaria amount to US$500 000 and are constantly rising. Stanishev invited Erdogan to Bulgaria to inaugurate together Sise Cam's plant near the town of Targovishte, northeastern Bulgaria. Erdogan laid considerable stress on tourism as a factor for improvement of the relations between the Turkish and Bulgarian people and enhancement of the cultural dialogue. He mentioned that 1.5 million Bulgarian tourists visited Turkey in 2005 but that the same hardly held true for Bulgaria. For this reason he recommended alleviation the visa control for Turkish citizens on Bulgarian borders. Both Bulgaria and Turkey are interested in the Nabucco project for transit of gas from Iran via Turkey and Bulgaria towards Europe. Stanishev believes the implementation of this project will be of use for the European countries. "The Turkish authorities control the bird-flu situation and are doing their best to prevent the epidemic from spreading into Turkey's neighboring countries," Erdogan said.
Source: Standart (18.01.2006)

Bulgaria's finance ministry will tender in March an advisory contract for the restructuring of gas distributor Bulgargaz and the development of the domestic natural gas market. The project, with a guide value of 454,000 euro, will be financed by EU's Phare program. Bulgaria's energy law envisages Bulgargaz to be split into a transmission grid operator, Bulgartransgaz, and a public gas supplier by the end of 2006. The management of the gas distributor has insisted that Bulgaria negotiate with Brussels a postponement of the restructuring for after the country joins the EU, pointing out that two requirements set out in the Energy Act - that Bulgaria secure alternative natural gas supplies and that the transmission network is coupled with that of an EU member state, have not been fulfilled. A decision on the timeframe and format for the restructuring of the company will likely be taken in February, said deputy energy minister Ivanka Dilovska. The process is made difficult by the lack of competition on the gas market, the official said. According to the restructuring plan prepared by the Bulgargaz management, the spin-off of the 2 successors of the gas distributor will take 9 months.
Source: Dnevnik (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 company’s management during the meeting with the minister of economy and energy, Mr. Roumen Ovcharov and European Bank for Reconstruction and Development’s representatives, at the end of last week.
Source: Dnevnik (23.01.2006)

The 2005 preliminary financial result of Bulgargaz amounted to BGN 128 mln accounting profit, representing a narrowing by BGN 32 mln as compared a year earlier. The reason for lower profit expectations is on last year fuel delivery price rise, the company, managed by the CEO, Mr. Kiril Gegov, announced. The total expenses in 2005 amounted to BGN 802 mln. BGN 35 mln from this sum were invested in modernization and facilities repair. Last year, the Bulgarian gas company entered in the state budget BGN 225 mln in taxes and dividents.
Source: Monitor (25.01.2006)

Natural gas consumption in Bulgaria in 2005 jumped by 11.08%, year on year, Bulgargaz said. A considerable increase was registered in the consumption of natural gas from local deposits, mainly from Galata, which is run by Melrose Resources. Compared with 2004, natural gas supply from Galata surged by 7.6%. In 2005 Bulgargaz's gas transmission system conveyed a total of 3.472 billion cu. m of natural gas. This included 3.065 billion cu. m Russian import gas and 407 million cu. m Bulgarian gas. Gas distribution companies continued to increase their market share last year, Bulgargaz CEO Kiril Gegov said. That was due to the expansion of the network to end consumers and the liberalisation of the market, Gegov explained. As a result of this Bulgargaz's share in the total amount of gas sales declined by 5.07% in 2005. The quantities transited to Turkey, Greece and Macedonia last year amounted to nearly 15.5 billion cu. m, or some 14.62% more than in 2004. Bulgargaz posted an income of BGN 930 million, expenditure stood at BGN 802 million. Preliminary data show that the accounting profit of the company declined by BGN 32 million to BGN 128 million, mainly due to the low prices for domestic consumption. Last year prices jumped by 9.6%.
Source: Pari (25.01.2006)

Eight companies are willing to become shareholders in the Nabucco consortium, which will build a the natural gas pipeline connecting the Caspian region with Central and West Europe, Bulgarian Bulgargaz's CEO Kiril Gegov said. The candidates include big European oil and gas companies and two of them will probably join the project. Currently participants in Nabucco include Turkey's Botas, Bulgaria's Bulgargaz, Romania's Transgaz, Hungary's MOL and Austria's OMV Gas. The project has become important not only for Bulgaria but also for Europe after Gazprom embarked on a price increase policy, Gegov added. The feasibility study of the project has been already completed. Nabucco Company Pipeline Study GmbH has been re-registered as an investment company: Nabucco Gas Pipeline International GmbH, based in Vienna. The development of the project is planned for 2006-8 and construction works have to be completed by 2011. The total length of the pipeline will be 3,300 km, the capacity will range between 25.5 and 31 billion cu. m of natural gas a year. The necessary investments are estimated at EUR 4.6 billion.
Source: Pari (26.01.2006)

Mounting debts to halt power supplies to Kremikovtzi steel works The National Electricity Transmission Company (NETC) said on Friday it would gradually cut electricity supplies to steel maker Kremikovtzi over unpaid debts totalling 95 mln levs. The power company said it would bring supplies down to the technical minimum of 20MW by February 17. In early 2004, NETC agreed to a 10-year rescheduling of Kremikovtzi's debts which back then stood at 70 mln levs. More rescheduling agreements, which the steel maker subsequently failed to honour, followed. The latest was negotiated in July 2005 when the power company again threatened to discontinue supplies. Meanwhile Kremikovtzi's liabilities increased by 5-6 mln levs over the past several months. Kremikovtzi said it will take steps to normalise relations with NETC, adding that it had met with understanding on the part of the electricity operator in the past. Kiril Gegov, the executive director of gas distributor Bulgargaz, announced in the beginning of this week that his company too was owed money by Kremikovtzi, but would not cite figures. Last August India's Global Steel Holding Ltd. (GSHL), part of the Ispat Group, acquired a 71% stake in Kremikovtzi from Finmetals Holding. Kremikovtzi posted an unconsolidated loss of 78.2 mln levs and 30% drop in sales for January-September 2005. Debts stood at 425.5 mln levs.
Source: Dnevnik (28.01.2006)

Gazprom continues to insist for lower transit taxes over the natural gas, which would lead to higher prices on the local market in Bulgaria, the minister of economy and energy, Mr. Roumen Ovcharov announced yestdray in the parliament. This is the Russian position, sent the day before yesterday to Bulgargaz. Mr. Ovcharov explained the new letter is not connected to the gas delivery narrowing. The stable oil and gas’ price increasing trend would lead to the need of second nuclear power station in the country, minister Ovcharov pointed out.
Source: Sega (28.01.2006)

Moscow ready to extend gas transit contract Moscow insists that the term of the contract for gas transit through Bulgaria after 2010 should be signed for a period longer than 20 years. Russia proposes to give up "gas-for-transit" barter, Russian Industry and Energy Minister Viktor Khristenko said after the meeting with his Bulgarian counterpart Roumen Ovcharov. Viktor Khristenko added that Russia highly appreciated the fact that Bulgaria fulfilled diligently and without risks the terms of gas transit to Turkey, Greece and Macedonia. The prospects for increasing the gas supplies for Greece and building of a new gas main to Greece and Montenegro were discussed at the meeting. "It's important that the preparation of the new agreements be started now in order to discuss with Bulgaria the most effective transit routes and the most advantageous conditions," the Russian Industry and Energy Minister said. The two ministers discussed the delivery of Russian nuclear fuel for Bulgaria as well as the possibilities for Russian participation in the building of Belene nuclear power plant. "The offers connected with the project are opened this moment," Roumen Ovcharov said. In March, the trilateral commission for the Bourgas-Alexadroupolis oil pipeline will gather, Minister Ovcharov siad further. Its members will discuss the necessity of signing a trilateral agreement between the three countries for speeding up the project's realization. President of RAO EES Anatolii Chubais told Minister Ovcharov that despite the unsuccessful participation in the privatization of the Varna thermal power plant the energy venture did not lose interest in other power units in Bulgaria.
Source: Standart (02.02.2006)

Russian state-owned gas monopoly Gazprom has asked to be granted ownership of the transit mains used by Bulgarian gas company Bulgargaz to pump Russian natural gas to neighbouring countries, Bulgarian energy minister Rumen Ovcharov said upon his return from a trip to Moscow. The transfer of ownership could be executed through the acquisition of a stake in Bulgargaz or participation in the construction of the transmission pipelines. Ovcharov said he told the Gazprom management that due to the ongoing restructuring of Bulgargaz, there are no plans to denationalise the gas distributor. Gazprom recently took over the ownership of 100% of the gas mains in Belarus. It also controls 50% of the gas mains in Moldova. The Russian gas monopoly had similar take-over designs on the gas pipelines in Ukraine during those two states' recent stand-off on gas supplies.
Source: Dnevnik (03.02.2006)

Gazprom wants second Topenergy Russian company Gazprom has once again raised the question for joint ownership of the Bulgarian transit gas pipelines, Bulgaria's energy minister Rumen Ovacharov said upon his arrival from a two-day working visit in Moscow on Thursday. Ten years ago a special company, Topenergy, was established arrange Gazprom's access Gazprom to the gas distribution network in Bulgaria. Topenergy, which became the bone of contention between the then prime minister Zhan Videnov and the late Andrey Lukanov, was closed later. There will be no revisions in the contract for Russian transit gas supplies to Bulgaria. However, Bulgaria is not such a big country to withstand a giant such as Gazprom. It is obvious that we will have to use all our available resources in order to balance our mutual interests, Ovcharov said. The possibility of signing a 20-year contract for the delivery of transit gas via Bulgaria, which is to come into effect after 2010, was also discussed during Ovcharov's visit. Gazprom shows interest in Bulgaria's TPPs, the gas distribution network in the country and the future privatisation of Bulgargas. The Russian company is willing to take part as an investor in the project for the construction of the Bourgas - Alexandroupolis oil pipeline. The company will participate through its unit Sibneft. Other Russian companies to take part in the project include THK British Petroleum and LUKoil.
Source: Pari (03.02.2006)

Mr. Pramod Mittal, owner of Kremikovtzi JSC: I must admit that the beginning of the work in Kremikovtzi proved much more difficult than I expected. We were forced to take many unexpected charges. We invested BGN 32 mln of our own capital and quite a lot of our family funds in current repairs. However our experts are just before finishing of the all-round strategy for the company's development, which will transform it into a modern and competitive steel maker. - Mr. Mittal, why did the management of the National Electricity Transmission Company (NETC) threaten you that it would stop the power supply to Kremikovtzi? Is it true that you do not pay your debts to NETC? NETC says you owe it a total of USD 95 mln. - The debts of Kremikovtzi that we succeeded are being paid according to the contracted payment schedules. So current difficulties are impossible but total non-execution – not. I would like to assure the management of NETC of our correctness. We in Global Steel have a more radical offer – to repay in advance all Kremikovtzi’s old debts to NETC and Bulgargaz and to sign a mutual agreement with the Government for the resolution of open and succeeded problems. - Does the Government know for your intentions? - In the coming days we will offer to the ministers Mr. Rumen Ovcharov and Mr. Plamen Oresharski such an agreement. It will create totally new situation for Kremikovtzi and particularly for our relations with NETC and Bulgargaz. - A rumour has it that you have problems with your debts to the National Social Security Institute (NSSI). - Our relations with the NSSI are completely satisfactory. The debt of the past has decreased significantly over the past years. We have an agreement that both sides are observing. The employees of Kremikovtzi JSC should not worry. Their old age is secured as the law provides. - Last September you said that in three years you will invest more than USD 300 mln in Kremikovtzi and will make the company "the steel lion of the Balkans". Will you manage to fulfill your investment programme? - There is no doubt that these investment intentions will be fulfilled. The funds however should be invested when there are clear projects. They will be implemented in compliance with the requirements of the European Commission within the framework of the so-called viability plan. The good news is that we are about to finish a new overall strategy for the development of the company. - What does this strategy include? - It concerns a package of projects, which will make Kremikovtzi very stable and competitive steel maker. Our aim is to make it a centre of new technology projects. The first task of the company this year is to produce over 1.2 mln tons of finished production, which means over 120,000 tons a month, as the increase of the output is the basis of all other successes. These are really ambitious but realistic tasks. - How are you going to solve the serious environmental problems of the company? The installations are from the 1960-70s? - By 2009–2010 Kremikovtzi should set its capacities in compliance with the EU’s principal environmental standards. This supposes big capital investments and if we do not make them, we are going to suffer hard sanctions by the European Commission. And these sanctions would be fair because modern industries are good when they do not pollute the environment. - Quite often in the past and even now workers could be heard to complain that their wages are not paid on time. The trade unions have even protested recently. What are the reasons for the delays? - I heard some time ago one of the plant’s directors to say, “Kremikovtzi may delay but always pays”. The truth is that every problem with the supply or marketing of the finished production leads to delay of the salaries in the company. Thus, in January because of the low temperatures and the stop of the gas supply we got direct losses and this delayed the payment of the wages. I think though that this system must be changed. Kremikovtzi should have more financial and input reserves. Now the average wage is BGN 730-750, which is about twice the average salary in the country. This is not the limit however. If we fulfill our programme for 2006, I expect the wages to rise more. - What is your opinion of the business climate in Bulgaria? You have units in dozens of countries all over the world. - Trends are very positive. Even impressive. The credit rating of the country has been rising. At the same time the world economy is now entering a new cycle – higher prices of oil and natural gas, fierce competition on all markets, global redistribution of the investments. I think that Bulgaria and its business will cope with these challenges. But I expect the role of the state monopolies to decrease as it is in all Europe. I also expect local statesmen to pay greater attention to big investors. - What are your relations with the government? - I had only brief meetings but I have wonderful impressions by the Prime-Minister Sergey Stanishev and the ministers Roumen Ovcharov and Plamen Oresharski. I believe we will come to an agreement on all open issues, which will also bring direct benefits to the budget. - Kremikovtzi is one of Bulgaria’s biggest exporters to Europe. Do you expect any changes after the country’s accession to the EU? - The company will continue exporting where its production is valued most. In the first place, this is Europe. The European markets are our absolute priority. We will pay bigger attention to the domestic market. It is necessary however to change everything according to the European criteria – discipline, order and most of all efficiency. Every employee at our company should produce as much as the employees at our rival companies. And it is our duty to provide the necessary equipment and investments. - Indian experts have already arrived at Kremikovtzi. How do they work with their Bulgarian colleagues? - My style is not to separate people by nationality or origin but by skills and loyalty. We have fantastic Bulgarian experts. We have good experts from India and Germany. I think we need more young professionals on leading positions. - Tell us something about Global Steel? Legends about your family’s fortune are told. - My father started making steel in 1950 when I was not born yet. The whole life of my family is connected with this business. Global Steel, the owner of Kremikovtzi JSC, produces an average of 12 mln tons of steel a year, which ranks us among the world’s first 15-17 companies. I have to point out that Global Steel is one of the most dynamic companies, which is obvious by the support of big international banks. - Mr. Mittal, you have already been in Bulgaria for half an year. How do you like it? - I have not traveled in Bulgaria a lot but I could say that you have beautiful country and very skilled metallurgists. I would like to thank everybody who believed us and with whom we work every day. The world is one big village – we all bring our cultures closer. In this respect Bulgaria is among the best countries in Europe by hospitality and tolerance.
Source: Trud (06.02.2006)

British steel trader eyes state-owned interest in Kremikovtzi British steel trading company Stemcor wants to buy the 25.29% stake in Sofia-based metallurgical plant Kremikovtzi held by the Bulgaria state, the economy ministry said on Monday, February 13. The ministry said the written notification of interest was received on January 3. Stemcor is willing to assume $71 mln of Kremikovtzi's outstanding debts and to negotiate the acquisition of the state-controlled equity at a fair price, said the economy ministry. The acquisition costs will be financed with a syndicated loan. In related news, it emerged that the ministers of economy and finance and the CEOs of national power grid operator NETC and of gas distributor Bulgargaz, the main creditors of the metallurgical company, met last Friday with Kremikovtzi's Indian owners. Global Steel Holdings Ltd reportedly undertook to present to the government the updated investment program of the metallurgical plant. Sources close to the talks said Global Steel Holdings Ltd asked the government to reschedule Kremikovtzi's outstanding debts but that proposal was rejected. No one from the Kremikovtzi management was available for comment.
Source: Dnevnik (14.02.2006)

The National Social Security Institute's Top 50 of the most law-abiding employers with personnel between 50 - 100 employees, insuring a total of 4079 people with average insurance income of BGN 898 40 JSC Information service – Plovdiv office – Plovdiv
Source: Other (14.02.2006)

The National Social Security Institute announced the top 50 most loyal employers with personnel of 100 to 250 people for 2005, insuring 10008 people with average salary of BGN 829: 1 Johnson Controls electronics Bulgaria - Sofia 2 Media Holding - Sofia 3 Deven - Devnia 4 Amylum - Razgrad 5 Bulgaria Prosecution – chief prosecutor - Sofia 6 Corporate Commercial Bank - Sofia . . . 38 SGS-Bulgaria - Sofia 39 Sofia Hotel Balkan - Sofia 40 Piccadilly Holding - Sofia 41 DZI - General Insurance - Sofia 42 National Academy of Arts – Sofia . . . 50 Sofia District prosecution - Sofia.
Source: Other (14.02.2006)

Bulgargaz will be split into two legally independent companies. One of them will buy and sell natural gas. The second one will transport, transit and store the fuel. It will be a 100% state-owned company called Bulgartransgaz, said CEO Kiril Gegov. The proposal has already been sent to the Bulgarian Ministry of Economy and Energy that has to take the final decision on the restructuring. "The restructuring of Bulgargaz should not send up gas prices," Gegov said further. The new holding will be put on the list of companies banned for privatization. "The future holding could participate as a shareholder in the oil pipeline Bourgas–Alexandroupolis, as well as in the upcoming construction of a transit gas pipeline to Serbia," said Valentin Ivanov, Deputy Minister of Economy and Energy. It is envisaged that the company will have a 20-% share in the Nabucco transcontinental pipeline.
Source: Standart (15.02.2006)

Bulgargaz, the state-owned company in charge of the import and supply, transmission, storage and transit of natural gas, will be restructured into a holding of 4 independent companies by the end of 2006. The company will break up into separate divisions the gas supplies, the management of the transmission infrastructure and storage facilities, the construction of new facilities and pipelines and the telecommunications business of the parent structure. The two key units in the future holding structure will be Bulgargaz, in charge of supplies, import and trade, and Bulgartransgaz, in charge of transmission, transit and storage, said Bulgargaz executive director Kiril Gegov. Bulgargaztel will be the name of the telecom division. The fourth division of the holding structure will participate in the expansion of the Serbia-bound pipeline, the Nabucco pipeline project and the likely construction of an Italy-bound pipeline. The energy ministry is expected to approve the proposed reshuffle of the gas monopoly within days. There are no plans to privatise the future holding company, said deputy energy minister Valentin Ivanov
Source: Dnevnik (15.02.2006)

New director to clear Kremikovtzi's debts All debts of Kremikovtzi JSC will be paid in the nearest future, yesterday said the new executive officer of the company Mr. Vilas Jamnis. The Holding Global Steel that bought Finmetals Holding JSC and owns 71 per cent of the metallurgical giant will pay to all creditors proved their taking in the court, and to the others it will offer buy back of the debts, explained Mr. Jamnis. From yesterday Kremikovtzi has renovated and extended managing Board. Mr. Vilas Jamnis that replaced Mr. Alok Gupta as Director of the company, has been member of the Managing Board. Mr. Maurizio Rosa will be sales manager. Eng. Dimitar Kuzmanov will negotiate the arrangement of accounts and arguments. We are negotiating with but still have no agreements with Bulgarian State Railways, National Electricity Transmission Company and Bulgargaz, which are some of the biggest creditors of Kremikovtzi, reported Mr. Kuzmanov.
Source: Sega (21.02.2006)

Kremikovtzi JSC steel plant starts construction works on a new electric furnace in April. Investments in the project are expected to total USD 30 million. This is a completely innovative technology which has been implemented only at the Mumbay plant of Ispat Industries, Vilas Jamnis, the new executive director of Kremikovtzi said. From yesterday Kremikovtzi has renovated and extended managing Board. Mr. Vilas Jamnis that replaced Mr. Alok Gupta as Director of the company, has been member of the Managing Board. Mr. Maurizio Roza will be sales manager. Eng. Dimitur Kuzmanov will negotiate the arrangement of accounts and arguments. We are negotiating with but still have no agreements with Bulgarian State Railways, National Electricity Transmission Company and Bulgargaz, which are some of the biggest creditors of Kremikovtzi, reported Mr. Kuzmanov.
Source: Standart (21.02.2006)

New furnace under construction in Kremikovtzi Kremikovtzi JSC steel plant starts construction works on a new electric furnace in April. Investments in the project are expected to total USD 30 million. This is a completely innovative technology which has been implemented only at the Mumbay plant of Ispat Industries, Vilas Jamnis, the new executive director of Kremikovtzi said. The Indian company acquired 71% in Kremikovtzi in the summer of 2005. The Indian owner appointed a completely new management board to the company as of yesterday. Former executive director Alok Gupta resigned for personal reasons. The new capacity is expected to double the output and reduce the cost value of the end product, Jamnis added. The new furnace will be built in twelve months. The installation of a new Japanese quality system has already started at four of the Kremikovtzi plants. The system is expected to reduce significantly flaws to the end product, the company said. Kremikovtzi will produce 1.5 million tonnes of steel in 2006 under the form of hot-rolled coils. The output is expected to reach 2.0 million t, Jamnis said.
Source: Pari (21.02.2006)

All debts of Kremikovtzi JSC will be paid in the nearest future, yesterday said the new executive officer of the company Mr. Vilas Jamnis. The Holding Global Steel that bought Finmetals Holding JSC and owns 71 per cent of the metallurgical giant will pay to all creditors proved their taking in the court, and to the others it will offer buy back of the debts, explained Mr. Jamnis. From yesterday Kremikovtzi has renovated and extended managing Board. Mr. Vilas Jamnis that replaced Mr. Alok Gupta as Director of the company, has been member of the Managing Board. Mr. Maurizio Roza will be sales manager. Eng. Dimitur Kuzmanov will negotiate the arrangement of accounts and arguments. We are negotiating with but still have no agreements with Bulgarian State Railways, National Electricity Transmission Company and Bulgargaz, which are some of the biggest creditors of Kremikovtzi, reported Mr. Kuzmanov.
Source: Sega (21.02.2006)

The State Commission for Energy and Water Regulation prepares the tender documents for opening of procedure for giving license for gas-distribution in Sliven. There are two candidates for the town - Gas Supply-Sliven and Promishleno gazosnabdyavane Kyustendil. According to the Energy Act in such cases opening of contest is required. Gas Supply-Sliven is company owned by Overgas and the Municipality that hold 20 per cent of the shares. In Promishleno gazosnabdyavane LTD 51 per cent of the shares are owned by Mr. Aleksandar Tasev, major owner of Furnir Story. Recently was registered the company Germaneya gas LTD where Promishleno gazosnabdyavane Kyustendil holds 66 per cent and the other 34 per cent are owned by Sapareva Banya Municipality.
Source: Dnevnik (24.02.2006)

The Bulgarian finance ministry has tendered a contract for the provision of institutional support for the corporative restructuring of state-run gas distributor Bulgargaz. The maximum budget of the project is 454,000 euro. The consultant will perform the following activities: carrying out the necessary analyses as regards the preparation for legal and organisational unbundling of Bulgargaz; benchmarking against the experience of EU member states and accession countries; assistance in improving the relevant legislation necessary to implement unbundling; proposal of a plan for legal and organisational unbundling of Bulgargaz; working out detailed trade regulations based on the EC Regulation on conditions for access to the Gas Transmission Networks. Participation is open on equal terms to all natural and legal persons of the EU member states, Albania, Bosnia and Herzegovina, Bulgaria, Croatia, the Former Yugoslav Republic of Macedonia, Romania, Serbia and Montenegro and Turkey. The selection criteria include total annual revenue of the candidate (a firm or a leading partner of the consortium) for each of the last 2 years for which accounts have been closed amounting to at least 900,000 euro. The candidate should also have a total of at least 15 persons permanent staff. The deadline for the receipt of applications is March 31. The restructuring of the gas distributor, required under the EU gas directive, should be completed by the end of this year. In mid-February, Bulgargaz executive director Kiril Gegov suggested to transform the company into a holding structure with 2 independent units: one handling trade, supply and transit and the other in charge of transmission and storage.
Source: Dnevnik (01.03.2006)

Regulator to review gas price hike request Bulgargaz, the state-owned gas distributor, has asked the power regulator to approve a price hike of 6.26 levs per 1,000 cu m for natural gas. As of April 1, Bulgargaz wants to sell the fuel at a new price of 302.95 levs per 1,000 cu m without taxes, citing the increase in international gas prices, the movements of the U.S. dollar and the domestic consumption forecasts for 2006. Bulgargaz sets the natural gas tariff using a formula specified in the gas supply contract with Russian monopoly Gazprom which runs out in 2010.
Source: Dnevnik (14.03.2006)

Bulgaria's gas transmission company Bulgargas will be restructured by the end of 2006. The company will be split into an operator and a public supplier. The new holding structure will also include Bulgartel and Bulgargas's interest in the Nabucco project. The proposal was presented by company executive director Kiril Gegov to the parliamentary energy committee. The changes are necessitated by the EU requirements. The legal aspects of the restructuring have to be settled by the end of August. This concerns the contractual relations among Bulgargas, Bulgartransgas, Bulgartel and Bulgargas Holding. Within two years the holding will have a new building, which will house some 1,200 employees. Bulgargas already keeps separate books for each of its activities, Gegov said. It prepares and publishes annual reports in conformity with both the national and the international financial reporting standards.
Source: Pari (16.03.2006)

Bulgargaz, the state-owned company in charge of the import and supply, transmission, storage and transit of natural gas, will participate in the design and construction of the Bourgas-Alexandroupolis oil pipeline, it emerged after Bulgarian ministers of energy and regional development minister Rumen Ovcharov and Asen Gagauzov met with representatives of Russian counterparts. The idea of the Bulgarian regional development ministry is to incorporated a new company to invest in the project. The new company will be 20%-owned by Bulgargaz while the remaining equity will be controlled by Universal Terminal Bourgas (UTB). UTB was created in 2005 by the Bulgarian government as a catch-all structure for the Bourgas-Alexandroupolis and Bourgas-Vlore pipeline. Bulgarian state-owned construction company Technoexportstroy is a 55% co-owner. A meeting with the representatives of the companies that will be involved in the project is scheduled to take place in March in Moscow. The Transbalkan Oil Pipeline Bulgaria (TOPB) was incorporated by MG Energy and Natural Resources, LUKoil Bulgaria, Monolit 3, Industrial Holding Bulgaria, KZU and Magnum 07 three years ago to implement Bulgaria's 33% share of the Bourgas-Alexandroupolis pipeline project. One of the options being considered by the Bulgarian regional development ministry is TOPB to be digested by the new company.
Source: Dnevnik (20.03.2006)

Half of Bulgaria may have no hot water in the summer. Bulgargaz threatened to stop deliveries for heat supply companies if they do not repay their debts until April. The total debts of all consumers to Bulgargaz are BGN 250 mln. BGN 120 mln are for the heat supply companies. The biggest debtor is Heat Supply-Sofia with over BGN 80 mln, followed by Plovdiv, Pleven, Shoumen, Varna and Bourgas.
Source: Standart (23.03.2006)

Bulgaria's Kremikovtzi mandates Merrill Lynch for note sale Bulgaria's largest steel mill Kremikovtzi mandated Merrill Lynch as sole lead manager and bookrunner for a euro-denominated note sale, a market source familiar with the details told news agency Reuters on Tuesday. The marketing roadshow for the financing vehicle, known as Bulgarian Steel Finance - incorporated as a private company with limited liability in the Netherlands, is ongoing, the source was quoted as saying by Reuters. No price guidance has been issued as of yet. Kremikovtzi is the guarantor of the notes, according to the preliminary offering circular obtained by Reuters. On March 10 the company, which is owned by India's Ispat Industries, said it would take a loan for up to 300 mln euro from an undisclosed Dutch lender. The marketing materials state the proceeds from the sale of the notes would then be onlent to Kremikovtzi with the intention that the company, subject to shareholder approval, terminate or swap old debt obligations for newer ones with its creditors and Global Steel Holdings Limited (GSHL), said Reuters. GSHL acts as the holding company of the Ispat group of companies. The balance of net proceeds are to be used for Kremikovtzi's general corporate purposes. It plans to use the funds to help boost production, improve environmental standards, meet its social obligations and ease the burden of debt owed for years to Bulgaria's state budget and state-owned companies, said Reuters. According to the marketing materials, Kremikovtzi had approximately 670.30 mln levs in total short-term and long-term debt. The brochure said Kremikovtzi has been the subject of bankruptcy petitions in the past and currently is the subject of an insolvency petition started in Sofia city court of 'an alleged unpaid claim of approximately 1.07 mln levs ($664,600).' The petition has been rejected by Sofia city court, but the creditor is appealing the decision to the Supreme Court of Cassation, the brochure stated. According to the brochure, Kremikovtzi is in arrears with regard to tax and duties payments, and payment of salaries, said Reuters.
Source: Dnevnik (23.03.2006)

State-run gas distributor Bulgargaz has urged the local heating utilities to pay 90% of their debts by April or face an array of enforcement measures that could include insolvency proceedings, said the head of the company's economic department Dimiter Gogov. The utilities owe Bulgargaz 125 mln levs. The biggest debtors are the heating utility of Sofia with outstanding liabilities of 93 mln levs and the utility of Plovdiv which has accumulated 13 mln levs in unpaid bills. The gas company is confident that the utilities will respond to its call as a large part of their subscribers pay their heating bills after the end of the winter. During this winter the heating utilities have collected from subscribers some 83-84% of their dues versus 65% a year ago, said Gogov. For the time being, the energy ministry is not contemplating an option to settle the Sofia heating utility's debts to Bulgargaz in exchange for more equity. Bulgargaz has threatened to cut down natgas supplies to its debtors if they fail to solve the issue by the summer. The gas company said it may take the matter to court and seek an injunction on its debtors' accounts or the launch of bankruptcy proceedings. In 2005, the heating utilities consumed some 1.04 bln cu m of gas out of a total consumption of 3.2 bln cu m in this country. Seven heating utilities have asked for a revision of the central heating tariff as of this summer citing a 26.6% hike in natgas prices over the past four months. Their request is yet to be reviewed, said Konstantin Shushulov, chairman of the State Energy and Water Regulatory Commission.
Source: Dnevnik (23.03.2006)

The receivables of Bulgargas from customers stand at BGN 250 million. The debts of heating utilities account for BGN 120 million of the sum. Toplofikatsia Sofia owes BGN 80 million alone. If the heating utilities fail to settle the bulk of their debts for the current heating season with Bulgargas by the end of April, the company will terminate gas supplies to the debtors, Dimitar Gogov of Bulgargas said. Bulgaria's State Commission for Energy and Water Regulation (SCEWR) and Bulgargas discussed at an open meeting yesterday an increase of the natural gas price, proposed by the gas distributor. Bulgargas suggests a 2.11% increase to BGN 302.95 per 1,000 cu. m (VAT excluded) as of the second quarter of 2006. Bulgargas suggested at the end of 2005 that the natural gas price be increased with over 20% but the the SCEWR lowered the demanded increase by almost 3%. This time, the proposed price hike by Bulgargas is grounded on the increase of the international prices of black oil and gas oil, which play a major role in the formation of the natural gas price. The US dollar has depreciated by 1.5% against the Bulgarian lev over the last 30 days. This enables Bulgargas to ask for a minimal increase of the natural gas price as the gas quantities Bulgaria receives instead of the transit fees for the transportation of the gas to Turkey, Greece and Macedonia allow regulation of the domestic gas prices. The transmission fee is calculated in the new price proposed by Bulgargas, SCEWR chairman Konstantin Shushulov said. The SCEWR will take a final decision on the change of the natural gas price at a closed sitting, scheduled for March 27.
Source: Pari (23.03.2006)

Price of natural gas up BGN 6.26 From April 1 the price of natural gas jumps from BGN 296.69 to BGN 302.95 without VAT. Yesterday the State Commission for Energy and Water Regulation (SCEWR) approved the update of the price, which Bulgargaz asked for the second quarter of 2006. The increase of BGN 6.26 (2.11 percent) is a result of the hike of the delivery price of natural gas at the Romanian-Ukrainian border near Isakcha. The main reason for the rise is the price increase of the liquid fuels on the international markets in the first quarter. The new price of the natural gas will not lead to changes in the price of heating and hot water, the SCEWR said.
Source: Standart (28.03.2006)

The Sofia district heating company is slipping dangerously close to insolvency under the weight of over 150 mln levs in debts towards gas supplier Bulgargaz. At the same time, the utility is struggling to collect over 200 mln levs it is owed by non-paying customers. Bulgargaz has already urged the domestic heating utilities to settle their outstanding gas bills by April or face supply cuts. The energy ministry is reportedly discussing options to keep the Sofia heating utility afloat. They range from insolvency proceedings to privatisation but the ultimate decision can be taken by the Sofia municipality which owns 59% of the company. The other 41% are held by the Bulgarian state. Sources from the energy ministry said Russian gas monopoly Gazprom, France's Dalkia and utility companies CEZ of the Czech Republic and EVN of Austria are among the parties interested in buying the Sofia heating company. When Gazprom requested a revision of the gas transit supply tariff in late 2005, the Bulgarian side tied the issue to the Russian company's likely participation in the denationalisation of heating utilities and the construction of the Belene nuclear power plant. Sofia mayor Boiko Borisov said he will propose to the municipal council to replace the current Sofia heating utility executive director Valentin Dimitrov with his deputy Georgi Rogachev. Borisov said he will also propose to energy minister Rumen Ovcharov to draft a recovery plan for the indebted utility. The Sofia district heating utility, the nation's biggest, services 386,000 households. The company is the biggest client of gas supplier Bulgargaz with annual consumption of 1 bln cu m. Bulgargaz said it has considered requesting insolvency proceedings but had ruled out the measure as last-ditch. After Bulgaria turned the tap on government handouts to the heating utilities for good in early 2005, production costs have outstripped heating prices. The World Bank and EBRD have recommended to the government to engage the private sector in the financial rehabilitation of the Sofia utility or opt for the privatisation of the company. The Sofia heating company is implementing an upgrade of the transmission network on 114 mln euro loaned by 2 banks and the Kozloduy International Decommissioning Support Fund. The loans are state-guaranteed and provided on the condition that an international manager is picked to run the company. However, the municipal council has been unable to select a manager for the struggling heating company in past 3 years.
Source: Dnevnik (28.03.2006)

There are no drastic violations and bad managing in Heat Supply-Sofia, yesterday reported Mr. Konstantin Shushulov, Director of State Commission for Energy and Water Regulation. He based his arguments on inspection of The Ministry of Economy in the company. According to him the problem is that families and budget organizations has not paid their heating bills. These non-collected takings are about BGN 160 mln. The Ministry of Mr. Rumen Ovcharov reported that the debts of Heat Supply-Sofia to Bulgargaz are BGN 158,4 mln until March 12.
Source: 24 chasa (29.03.2006)

Bulgarian gas supplier Overgas is ready to build civic gas distribution networks in Bansko and Simitli, said Bansko mayor Alexander Kravarov. Overgas confirmed it was interested in the project. Ski resort Bansko and Simitli are located on the eastern and western side of the Pirin mountain respectively. The Bulgarian government decided in May 2005 to allocate 30 mln levs from the dividend that state-run gas distributor Bulgargaz was due to remit to the national budget for investment in infrastructure connecting the Bansko, Razlog and Simitli areas with the exiting gas pipeline grid. Bulgargaz executive director Kiril Gegov assured the said infrastructure will be built in 2006. The Bulgargaz board is expected to discuss the issue later this week.
Source: Dnevnik (03.04.2006)

Heat Supply-Sofia should change its politics and introduce stimulation for its correct subscribers, as well as to give opportunity for payment on installment plant. This recommend experts after the inspection of the Ministry of Energy in the company, ordered by Minister Mr. Rumen Ovcharov and the Mayor Mr. Boiko Borisov. The private heat supplies in Vratsa and Rousse has already launched such stimulation. According to the experts the company should introduce information system for its debtors and system for payments control. The inspection has also found out that the debts of the home subscribers in 2005 have increased by 15,8 per cent from 2004 and amount to BGN 129,1 mln. The debt to Bulgargaz from 2003 until now is about BGN 100 mln, as at the middle of March it increased by BGN 158,4 mln.
Source: Dnevnik (03.04.2006)

Kremikovtzi sells EUR 300 mln bond Kremikovtzi will sell bonds for EUR 300 mln to pay its creditors, the general meeting of the shareholders decided on Thursday. Law Debenture Trust Corporation is the trustee for the issue and Merrill Lynch will place the bonds. The bulk of the loan will repay the debts of the metal plant to State Receivables Collection Agency, National Electricity Transmission Company (NETC) and Bulgargaz, and the rest of the money will be invested. The former owner and director of the company Mr. Valentin Zahariev was dismissed as member of the Supervisory Board. The state representative Mr. Ivan Mihaylov was replaced by Mr. Atanas Bogdanov, also former director of the company.
Source: Standart (07.04.2006)

Bulgaria will have to make concessions to Russia's Gazprom and agree to a revision of the formula for calculation of the price for natural gas transit. That emerged after the latest talks between minister of economy and energy Rumen Ovcharov and Gazprom deputy executive director Alexander Medvedev. Currently Sofia pays supplies at the market price of USD 270 per 1,000 cu. m. The problem is that Russia no longer wants to pay its transit fees in gas deliveries, as these quantities are billed USD 82-83 per 1,000 cu. m. The formula of the transit fees has to be changed, because it is no longer economically grounded, Alexander Medvedev said. Otherwise we will have to approach the European Union's regulatory bodies, he added. Rumen Ovcharov in turn recalled that the transit fees in the agreement are fixed, while the European energy charger bans barter deals below the market prices.
Source: Pari (17.04.2006)

Bulgargaz SPJSC seeks for company to design and construct exploitation drilling of the underground gas depository Chiren, according to the announcement for public procurement in the electronic register. The gas company offers to the executor a contract for 11 months. The executor should also design and construct the necessary for exploitation of the drilling train and telemetry, as well as to connect it to the existing individual separation knot.
Source: Dnevnik (18.04.2006)

The Balkan and Black Sea Petroleum Association (BBSPA) will ask the Parliament for tax relieves for companies that have won auctions for petrol and gas exploring in the off-shore part of Black Sea. Members of the association are British Petroleum, Exon Mobile, Shell, Total, Eni, Gaz de France, Lukoil, OMV, Statoil, Bulgargaz, Romgaz, Helenic Petroleum, PricewaterhouseCoopers, KPMG and ING Bank. The investments for research and exploration are huge, one drilling costs more than USD 50 mln, and there is no guarantee for repayment. The Association also asked the price of the natural gas for the home market not to be bounded with the revenues from transit charges neither with the possible investments from Gasprom.
Source: Standart (20.04.2006)

Bulgargaz could finance 25% of the project for the construction of the Burgas–Alexandrupolis pipeline, CEO of the company Lyubomir Denchev said for Mediapool. By the end of the year a meeting between the potential investors will be held in Moscow to negotiate what their shares in the project will be. It is clear that Greek companies will take part in the project.
Source: Standart (25.04.2006)

The Bulgarian government decided Wednesday to opt out of Transbalkan Oil Pipeline Bulgaria (TOPB), the consortium that will design and build the Bourgas-Alexandroupolis oil pipeline. TOPB was created two years ago by MG Energy and Natural Resources, LUKoil Bulgaria, Monolit 3, Industrial Holding Bulgaria, KZU and Magnum 07 which each have a 14.2% share.
Source: Monitor (04.05.2006)

The state company Technoexportstroy especially popular with the concession of Trakia Highway wil join Bulgargaz in the consortium that will invest in a project for the pipeline Bourgas-Alexandroupolis. This said the Minister of Foreign Affairs Mr. Ivailo Kalfin who assured its Greek colleague that Bulgaria continues to be highly interested in the project for the pipeline. Technoexportstroy is one of the two Bulgarian companies that together with three Portuguese ones are in the consortium Trakia Highway, which was granted the concession without an auction or tender. On Wednesday evening the Bulgarian official representatives flatly denied the information that the Bulgarian companies and the Government leave the consortium for the project Bourgas-Alexandroupolis.
Source: Sega (05.05.2006)

Bulgarian steel mill Kremikovtzi taps bond proceeds to repay debts Bulgaria's largest steel mill Kremikovtzi, majority owned by Indian steel maker Ispat Industries, has retired outstanding debts of 112.8 mln levs towards the National Social Security Institute, the State Receivables Collection Agency and the tax administration. The debts were repaid from a 325 mln bond placed by the steel works a week ago. Kremikovtzi is now negotiating with NETC and Bulgargaz on the repayment of some 130-140 mln levs it owes to the national power grid operator and the state-controlled gas distributor. In addition to the settlement of outstanding debts, which have been under a lid since early 2006, Kremikovtzi also plans a large-scale investment program. The company will absorb $70 mln in 2006 and $300 mln over the next 5 years. The spend should double annual steel output to 2 mln tons in 2 years with exports seen at $1 bln. The payments made to government agencies and companies has not yet resolved the problem with the injunction imposed on the shares of the majority owner in 2004 in connection with a $50 mln euro claim against the steel mill filed by the Post Privatisation Control Agency. The agency is trying to penalise the company for defaulting on post-privatisation obligations.
Source: Dnevnik (08.05.2006)

Sofia Municipality allowed the local Heat Supply utility to ask higher heating prices. The company asked for an increase by 8 percent because of the price hike of natural gas. However the company has to negotiate it with the State Commission for Energy and Water Regulation. The DSB suggested instead Heat Supply wanting price increase of the heating, Bulgargaz to decrease its income and to offer cheaper fuel to the company.
Source: Standart (12.05.2006)

Natural Gas, AK-47 and MiG are the top agenda in Moscow A strong smell of natural gas could be felt at the negotiations, which kick off in Moscow today. Sofia and the Kremlin will again put on the agenda complicated problems, which they have tried to solve for years now. Will Russia finally admit that Bulgaria produces submachine-gun Arsenal, which has nothing to do with AK-47? When will Moscow pay the rest of its debt to Sofia? Who is going to repair the MiG-29 fighters? The natural gas, which Bulgaria receives from Russia, remains the biggest issue to be discussed. What price of natural gas will Minister of Economy and Energy Roumen Ovcharov manage to negotiate? All Bulgarian citizens want to know the answer of this question, because it has an immediate bearing on the contents of their pockets. The session of the Joint Bulgarian-Russian Commission for Economic, Commercial, Scientific and Technical Cooperation in Moscow will last three days. This time the session will take place against the background of the ongoing tender for the construction of Bulgaria second NPP in Belene. One of the two bidders is Russia-based Atomsroyexport.
Source: Standart (15.05.2006)

Kremikovtzi secured bonds with equipment from the new plant The metallurgical company Kremikovtzi lodged machines and equipment from its new plant for continuous steel casting as provision for its debenture loan of EUR 325 mln. The mortgage of the company is already written in the registered pledges of the Ministry of Justice. The company has already taken part of the debenture loan and has paid off all its debts and taxes, duties and obligatory security payments, which amounted to BGN 113 mln. After the repayment the State Receivables Collection Agency canceled the distraint of the bank accounts, motor vehicles, movable property and real estate of the company. Two weeks ago the metallurgical plant sold through the Dutch Bulgaria Steel Finance a total of EUR 325 mln of bonds with 7-year maturity and annual rate of 12 per cent. In order to make the bond more attractive, for each purchase of EUR 1 mln Kremikovtzi gave to the investors warrants for 6172 shares of the company. The shares of the major owner of the plant GSHL Bulgaria are blocked so it cannot control them due to a restriction on lawsuit for penalty of EUR 50 mln that should be paid to the Agency for post-privatization control. The equipment in the new plant, pawned as provision for the loan, was delivered by the Austrian company Voest Alpine, one of the leading companies for development of metallurgical technologies. For its launch were invested EUR 3,5 bln, according to preliminary reports. The equipment was started in the summer of 2005, after 10 years of postponing their launch due to lack of money. Kremikovtzi will use the funds raised through bond issuing not only for repayment of debts to companies but also for implementing an investment program. Still active are the debts to Bulgargaz and National Electricity Company (NEK), which are between BGN 130 and 140 mln, but negotiations for repayment are being held. In 2006 Kremikovtzi plans to invest EUR 70 mln, and during the next five years – up to EUR 300 mln for the modernization of the production process, for environment protection and improving the working conditions.
Source: Dnevnik (15.05.2006)

Russia demanded higher prices for natural gas, which Gazprom delivers to Bulgaria under a barter contract. Bulgaria receives gas against transit fees for the gas transited through its territory to Turkey, Greece and Macedonia. "Gazprom demanded that Bulgaria should have a clear vision by end-June as to how this country will make up for the low prices of gas," Bulgaria's Minister of Economy and Energy Rumen Ovcharov informed after his meeting with Alexey Miller, Chairman of Gazprom's management board. "We have come to terms with Mr. Miller that the two sides should seek a solution of mutual interest, not to the detriment of Bulgaria or Gazprom. We shall definitely do our best to find ways for a favorable for both sides short-term and long-term cooperation," Minister Ovcharov added. The construction of "Bourgas-Alexandrupolis" oil pipeline was also the agenda at the meeting between Ovcharov and Miller.
Source: Standart (17.05.2006)

The Sofia municipality, a majority owner of the city's district heating company Toplofikatsia, has banned the disposition of company property for the duration of the ongoing financial audit. The measure will have to be approved by the energy ministry, which owns 42% of the company. The audit of the heating utility, which began on May 16, was prompted by customer complaints. On the very first day of the audit, the officials discovered that former executive director of the utility had built a secret office with luxury furniture, a massage chair and a tanning saloon, among other amenities.
Source: Dnevnik (19.05.2006)

Russia renews demands for revision of natgas transit agreement The contract with Gazprom on the transit of natural gas via Bulgarian territory will be updated only if the revision balances out the interests of the Russian monopoly and its Bulgarian counterpart Bulgargaz and the knock-on effect for domestic prices is rescheduled up to 2015-2020, Bulgarian economy minister Rumen Ovcharov said during the weekend. Gazprom managing board member Bogdan Budzulyak said on Friday that the Russian company is proposing a gradual increase of natgas prices in Bulgaria. The two sides are not making progress in the negotiations, an outturn that could led to a supply stoppage, said the Russian company executive. Bulgaria is not facing a supply crunch similar to the one experienced by the Ukraine earlier this year because our contract is purely commercial and envisages default penalties, responded Ovcharov. Under the long-term natgas contract with Gazprom, Bulgaria receives gas supplies instead of fees for the transit of the Russian gas. The Russian side is insisting that the payments are effected in cash and not in gas supplies at fixed prices. Bulgaria currently transits 1.4 bln cu m of Russian natgas annually at USD82 per 1,000 cu m, a level substantially lower than the going market tariff. The agreement allows Bulgargaz to maintain lower natgas prices on the domestic market.
Source: Dnevnik (29.05.2006)

The Council of Ministers decided yesterday that Bulgargaz will hold 25 pct share of the new company that Bulgaria will take part in, in the international company, for the pipeline Burgas – Alexandropulis.
Source: 24 chasa (02.06.2006)

UTB and Bulgargas will hold 75% and 25% stakes, respectively, in the new Project Company Bourgas-Alexandroupolis - BG, which is to represent Bulgaria in a future international project company for the construction of the Bourgas-Alexandroupolis oil pipeline. UTB was established by the former government with the sole purpose of constructing and operating the common entrance of the Bourgas-Alexandroupolis and Bourgas-Vlore pipelines. State-owned Technoexportstroy holds a majority stake in UTB. Private company Frontier holds a 45% stake. The new Bulgarian company will hold an at least 24.5% stake in the international project, agreed upon in a memorandum. The company will also be able to participate actively in the taking of all important decisions, exerts told the Pari daily. The signing of the memorandum is a crucial step in the implementation of the project. The signing of the document has been delayed as a meeting between Bulgaria, Greece and Russia on the Bourgas-Alexandroupolis project, which was supposed to take place in the beginning of May in Moscow, still has not been scheduled.
Source: Standart (05.06.2006)

Bulgargaz, the Bulgarian state-controlled gas monopoly, and the Universal Terminal Bourgas (UTB) company will be involved in the international corporation that will design and build the Bourgas-Alexandroupolis oil pipeline, Sofia decided late last week. UTB was created in 2005 by the Bulgarian government as a catch-all structure for the Bourgas-Alexandroupolis and Bourgas-Vlore pipelines. Bulgarian state-owned construction company Technoexportstroy is a 55% co-owner. Neftoprovod Bourgas-Alexandroupolis BG, co-owned by UTB and Bulgargaz, will control at least 24.5% of Bourgas-Alexandroupolis oil pipeline contractor. The company will also screen the Bulgarian contractors that want to participate in the project and negotiate the financial packaging of the project. An official press release from the Bulgarian government said the recent consultations with Washington, Brussels, Moscow and Athens entail to fast-track the creation of the international corporation. The cost of the 280 km Bourgas-Alexandroupolis pipeline is estimated at 700 mln euro. The facility will initially transit 35 mln barrels of oil.
Source: Dnevnik (05.06.2006)

The shareholders of Heat Supply-Sofia will vote changes in the company’s management at the general meeting appointed for June 23, the minister of economy and energy Mr. Rumen Ovcharov announced. The ministry is still considering on who will manage Heat Supply replacing the current head of the Board of Directors Mr. Ilko Yotsev. The member of the Board of Directors and former manager of the state-municipal company Mr. Valentin Dimitrov already hinted at he was ready to resign even before the deadline of his contract – July 9.
Source: Monitor (06.06.2006)

The Ministry of Economy and Energy and the Sofia Municipal Council both agreed with the privatization of 100% of the capital of Heat Supply-Sofia JSC. This announced for journalists the Minister of Economy and Energy Mr. Rumen Ovtcharov and the Chairman of Sofia Municipal Council Mr. Vladimir Kisiov. The debts of the heat supply company to Bulgargaz will be assumed by the new owner. On 23 June a General Meeting will be held for taking decisions for discharging the Managing Board of Heat Supply-Sofia and electing a new one.
Source: Dnevnik (08.06.2006)

Toplofikatsia, the heavily indebted central heating company, looks as a morsel to energy giants. Five companies compete for Sofia central heating company, Standart learnt. The leading energy providers sent letters of intent to the Bulgarian Ministry of Economy and Energy. These are: Gazprombank, Dalkia, EVN, CEZ and Prisma Electric (USA.) Two of the candidate buyers - Gazprom and CEZ - have confirmed before Standart their interest in the deal. Prisma Electric, for instance, say they are prepared to buy central heating ventures across Bulgaria. According to Rumen Ovcharov, Minister of Energy and Economy, the debts of Toplofikatsia run at 111 million levs (over 50 million euro.) In the opinion of experts, it would be more profitable to sell Toplofikatsia as a whole business instead of offering it as separate companies, which would bring down the price by at least 50 million levs.
Source: Standart (09.06.2006)

Bulgargaz, the state-run gas supplier, has given a 4-day notice to district heating companies to either settle their outstanding gas bills or negotiate their rescheduling. The gas supplier is willing to postpone the full payment of the bills until Sept. The unpaid gas bills of the utilities surged to 150.3 mln levs at the end of the last heating season. Bulgargaz has already cut off the gas supply of the district heating company in Burgas.
Source: Dnevnik (13.06.2006)

Natural gas price not to go up in July Natural gas price will not be raised as of July 1, State Commission for Energy and Water Regulation (SCEWR) head Konstantin Shushulov said yesterday. We have been assured by Bulgargas that the price of natural gas will not go up in the third quarter of 2006, Shushulov said. The SCEWR sets the price of the natural gas quarterly at the request of the state-owned company. Bulgargas refuses that the natural gas price be revised twice annually, it emerged last week.
Source: Pari (13.06.2006)

The district heating companies based in Sofia, Plovdiv and Burgas have reached an agreement with state-owned gas supplier to reschedule the payment of their outstanding gas bills. Bulgargaz gave the heating utilities notice to either agree to a rescheduling plan or settle their outstanding payments by June 16 or face supply stoppages. Sofia's district heating company has rescheduled until September the payment of BGN 70 mln. The company owed Bulgargaz a total of BGN 111.3 mln by the end of March. The heating utility in Plovdiv has rescheduled the payment of BGN 12.4 mln while the agreement with the Varna utility covers a debt of 2.2 mln levs. The privately-owned utilities in Burgas, Pleven and Vratsa said they expected to hammer out an agreement with Bulgargaz by the end of next week. The Burgas heating utility has so far refused to comply with the demands of the gas supplier to sign an agreement rescheduling the payment of its entire debt of BGN 7.4 mln. The clients of the district heating company based in Shumen have been left with no hot water after the utility refused to reschedule the payment of BGN 5.8 mln in gas bills to Bulgargaz. The unpaid gas bills of the heating utilities ballooned by BGN 46.9 mln to 150.3 mln levs in November 2005-April 2006.
Source: Dnevnik (19.06.2006)

Òhe heating utilities in Sofia, Plovdiv, Pleven, Varna, Bourgas and Vratsa have reached agreement with Bulgargas and the Bulgarian gas transmission company will not suspend supplies to the six cities. The agreement envisages a mechanism for repayment of the debts incurred by the utilities during the past heating season. According to Bulgargas's press release, the heating company in Shumen has itself terminated the use of natural gas and the supply of hot water to its subscribers. Meanwhile Sofia mayor Boyko Borissov said that the final report on the check-up at Sofia's Toplofikatsia was ready. According to him, the breaches at the heating company under the management of ex head Valentin Dimitrov amounted to BGN 12 million.
Source: Pari (20.06.2006)

The future owners of the district heating companies in Varna, Plovdiv and Shumen should be required to retire at least half of the companies' debts to gas supplier Bulgargaz, to develop a strategy for the reduction of transmission losses and adopt new technologies like co-generation. The economy ministry is insisting that the above requirements are included in the tender documents for the upcoming privatisation of the heating utilities. The timetable for the privatisation of the utilities and the eligibility criteria for the potential buyers will be announced at the end of June, said economy minister Rumen Ovcharov. The sell-off procedures will be open to companies in the business of heat production with a credit rating equal to that of the Bulgarian government, said Privatisation Agency chief Todor Nikolov. Austria's EVN and CEZ of the Czech Republic, which own power distribution outfits in Bulgaria, as well as French utility company Dalkia and Italian gas and water company Enel have so far indicated their interest in the privatisation of the Bulgarian heating utilities. Bulgarian companies can gain entry to the procedures as part of consortia.
Source: Dnevnik (21.06.2006)

EK, Bulgaria's national power grid operator, and national railway carrier BDZ have announced plans to deploy telecommunication networks to compete with the likes of BTC, the former telecom monopoly. BTC and BDZ will both apply for telecom licences while BDZ intends to pursue a permit for electricity distribution as well. NEK plans to install by the end of 2007 a fibre-optic backbone second only to that of BTC, said the company's executive director Mardik Papazyan. The 2,200 km network, which will provide datacasting, international connectivity and leased lines, will pack 24 optical fibres. NEK already has in place 700 km of the network, mainly in Central Bulgaria. After the NEK's corporate restructuring is finished in late 2006, the company will register a telecom subsidiary, NEK Tel. Telecom experts said NEK was unlikely to be able to reach end-customers. BDZ said their fibre-optic network was conceived back in 1998 but the company was still unsure about the sources of the 150 mln levs in financing needed for the project. The railway carrier has already completed a datapipe linking Sofia and Gyueshevo, on the border with Serbia, and is working on a link between Blagoevgrad and Kulata, on the border with Greece. NEK's fibre-optic network will reshuffle the leased lines market currently accommodating BTC, Bulgargaz unit Bulgargaztel and cable operator CableTEL. The state-owned Bulgargaz and NEK could opt to merge their telecom units, emerging as the nation's biggest infrastructure operator, said Bulgargaz board chairman Valentin Ivanov.
Source: Dnevnik (26.06.2006)

Bulgaria may be left empty handed after the creation of the international corporation that will implement the Bourgas-Alexandroupolis crude oil pipeline project, unless it agrees that the Russian side is granted a 51% stake in the venture, said a source close to the negotiations on the project with the Russian side. Russia presented at a meeting in Moscow a couple of weeks ago its vision for the shareout of the corporation that will design and operate the pipeline. A month ago, Bulgaria said that Bulgargaz, the state-controlled gas monopoly, and the Universal Terminal Bourgas (UTB) company will co-create a Bulgarian corporation that will control at least 24.5% of the Bourgas-Alexandroupolis oil pipeline contractor (half of the remaining 49%), a move that squares with the position of the Russian side. It is unclear if Greece, the third partner in the pipeline project, will accept the new condition. The three partners had previously agreed to split the project into equal 33% stakes. The Greek candidates have created the Thraki company for the purposes of the project. Participants in the Moscow meeting said they were rather left with the impression that TNK-BP, one of the Russian companies involved in the project, had presented its own vision for the project and that it was not supported by its fellow Russian partners Gazprom Neft and Rosneft. According to unofficial sources, if the Bulgarian representatives consent to the Russian demands for a bigger share of the pipeline that could be interpreted as a compromise in the context of the two sides' ongoing dispute over a long-term gas supply agreement. If Moscow has made any demands for a bigger share of the pipeline project, these were tabled at expert level with no moves made in that direction on political level, said the Bulgarian economy ministry. Bulgargaz and UTB will have to raise EUR 230-240 mln for the project. That amount should not be a problem, said the Bulgargaz management. The cost of the 280 km Bourgas-Alexandroupolis pipeline is estimated at EUR 700 mln. The facility will initially transit 35 mln tons of oil annually.
Source: Dnevnik (27.06.2006)

"The Nabucco pipeline that will supply gas from the Caspian region for Europe has to be ready not later than 2011," said Ovcharov. The energy ministers of Bulgaria, Turkey, Romania, Hungry and Austria agreed to speed up the construction of the pipeline that will be 3300 km long and will cost an estimated 4.6 billion euro. The five countries will have to provide only 30% of the necessary money. The other 70% will be covered by the company that will construct the pipeline - Nabucco Gas International. "There are four options for transit of Russian gas through Bulgaria that are being negotiated with Russia," said Bulgaria's Economy and Energy Minister Rumen Ovcharov. The first option is that the gas transit contract with Russia remains unchanged until 2010. However, after that only six billion cubic meters of gas will pass through our territory. For comparison, last year around 15.5 billion cubic meters of gas passed through Bulgaria. "The second option is to renegotiate the volumes which will lead to changes in the prices," said Ovcharov. This means that the gas will become more expensive but the rise in prices will be compensated by the fees collected for the higher volumes of gas transit, explained experts. The best option for Bulgaria would be to sign a new contract until 2030 under which the volumes of gas transit will be raised to 20 billion cubic meters after 2010. Ovcharov did not explain what the fourth option was exactly. Next week Bulgaria's Economy and Energy Minister will leave for Russia for a meeting with representatives of Gazprom. The Russian company insists that the 1998 barter agreement is revised and prices of natural gas be determined according to the market price of the fuel. "I hope that a memorandum will be signed with Gazprom until the end of the summer," said Ovcharov.
Source: Standart (29.06.2006)

Till the end of the year a gas-distribution station will be constructed in Simitli, which will supply Bansko and the region. Three projects have been drafted by Chimcomplect engineering JSC for research of natural gas supply for Bansko, Razlog, Dobrinishte and Banya. One of them will be approved of, after which a joint company between Bansko municipality and the company-contractor is to be founded.
Source: Darik Radio (30.06.2006)

The Russian companies involved in the international company that will implement the Bourgas-Alexandroupolis crude oil pipeline project have demanded additional guarantees that the venture will be profitable. That would slow down the project as it would require the spending of extra cash on further feasibility studies, said experts. This would not be the first time that the Russian side has requested assurances about the profitability of the pipeline. Executives from the Bourgas-Alexandroupolis company, 25%-owned by Bulgaria's state-run gas distributor Bulgargaz, Russia's TNK-BP, Gazprom Neft and Rosneft and Greece's DEP/Thraki discussed on Thursday and Friday last week the shareout of the pipeline company. Sofia has decided that the Bulgarian and Greek companies should have at least 24.5% share of the project, leaving 51% to Russia. The final document adopted at the meeting calls for a 12-15% guaranteed rate of return, an objective included at Sofia's insistence. The cost of the 280 km Bourgas-Alexandroupolis pipeline has been revised to a billion euro from an initial estimate of EUR700 mln. The facility will initially transit 35 mln tons of oil annually.
Source: Dnevnik (03.07.2006)

Revision of contract with Russia would raise natural gas price by 11% A revised contract for natural gas transit from Russia, which would exclude deliveries of natural gas to Bulgaria at preferential prices, would raise the value of net imports of oil and natural gas by between 8.7 and 11.3% in 2006, Industry Watch analysts say. A similar development would result in the widening of the current account gap by 5% or 0.8% of GDP for 2006. Heating utilities and the chemical industry will be the most affected, if the contract is revised in the middle of 2006 instead of in 2007. A similar scenario would bring about an increase of 14% in the costs of the heating utilities. The chemical industry costs will go up by 10-12%. Bulgaria in Russia participate in a number of large-scale energy projects, which depend on the bilateral relations. The value of the projects for the transfer of oil and gas alone is estimated at EUR 6-7 billion. Investments on the territory of Bulgaria under the projects are expected to total EUR 1.3-1.5 billion or 4-5% of the estimated investments in the Bulgarian economy for the next four years.
Source: Pari (04.07.2006)

If barter payment agreement for the natural gas transit through Bulgaria is cancelled the prices of natural gas and crude will up by 8.7-11.3 percent by the end of 2006, shows the analysis of Industry Watch based on the possible scenarios of changes in the agreements between Bulgargaz and Gazprom. The impact on the balance of payments will lead to a 5-percent higher deficit in 2006, the prognoses show. This means a deficit increase in the trade with Russia of about USD 90 million, experts explain. In 2006 a hike in gas prices will raise the expenditures of central heating companies by about 14 percent, while the chemical companies will pay 10-12 percent more.
Source: Standart (04.07.2006)

Moscow has sent the preliminary contract for the construction of the Burgas-Alexandroupolis oil pipeline to Bulgaria and Greece, writes the Greek newspaper Imerisia. Russia takes up the commitment to ensure the unproblematic transit of oil and Greece and Bulgaria should guarantee full political support to the companies - participants in the project, as well as the cancellation of harbor dues and custom duties in the ports of Burgas and Alexandroupolis.
Source: Monitor (05.07.2006)

Sofia Central Heating Company (SCHC) may be declared bankrupt just before the beginning of the new heating season. "All I can do is declare SCHC bankrupt," Bulgaria's Minister of Economy and Energy Roumen Ovcharov stated in connection with the sluggish preparation for the privatization of the company. Over a month ago, Minister Ovcharov negotiated with the Chair of Sofia Municipality, Vladimir Kisiov the establishment of an interdepartmental working team to decide the privatization procedures of SCHC. But nothing has been done so far. As Standart already wrote, Mayor of Sofia Boiko Borissov is against the privatization of the heating company. Mayor Borissov is even working out a recovery strategy. Borissov has not appointed officials for the working group yet. "I will have to declare the SCHC bankrupt to start the privatization procedure," Minister Ovcharov stated. At present, SCHC owes over BGN 60 million to the state-run company Bulgargaz, which makes well informed think that Borissov's intention to keep SCHC all municipality-owned is far from achievable. The European Bank for Reconstruction and Development (EBRD) and the World Bank are also pushing for the privatization of SCHC. End-last week, representatives of the two financial institutions had a meeting with Bulgaria's Deputy Minister of Economy and Energy, Valentin Ivanov, to discuss the serious delay of the privatization of the company. The two banks have granted state-guaranteed loan to the heating company, but due to non-execution of a clause from the contract - entering of a foreign operator in the management of the company, EUR 15 million from the loan were cut off.
Source: Standart (01.08.2006)

No bids were submitted for the main facilities of Bulgarian glass-maker Kristal of Pernik. The auction was scheduled for Wednesday. According to industrialists, the region is attractive for its infrastructure and proximity to the capital city. The start prices, however, were inflated by the higher tax assessments, which probably discouraged buyers. A new auction, where prices will be cut to 80%, will be announced within two months.
Source: Standart (10.08.2006)

Two banks are bidding for Kremikovtzi's debts Two big European banks are bidding for Kremikovtzi JSC’s debts to National Electricity Company (NEK) SPJSC and Bulgargaz SPJSC. These are old debts accounting around BGN 100 mln that on an installment plan determined by the ex-government. The bank bids that are submitted to the Ministry of Economy and Energy offer covering all debts but with some reductions made by the government. Currently Kremikovtzi is accurately following it’s installment plans to National Electricity Company (NEK) SPJSC and Bulgargaz SPJSC, said the executive director Vilas Jamnis. He reminded that not so far ago the company has paid BGN 112.8 mln. With these funds all debts to National Social Security Institute and State Receivables Collection Agency for taxes and pensions were covered. This actions increased the company’s rating.
Source: Trud (18.08.2006)

Bulgaria's power regulator has launched a competitive procedure for the award of a gas distribution licence for the territory of ski resort Bansko. The submitted bids will be unsealed on February 19, 2007. The recipient of the permit will be required to install the gas distribution network at least partially by the 10th year of the permit's entry into force. The regulator was forced to resort to a competitive procedure after 2 companies - Lexington and Pirin Power, said they were interested in the Bansko permit. Tamplier, 50 per cent-owned by former deputy energy minister Ilko Yotsev, controls 70 per cent of Lexington. Enemona, the local power engineering company, owns 50 per cent of Pirin Power. Overgas, the local gas supplier co-owned by Russia's Gazprom, also said it will buy the tender papers for the Bansko permit. The power regulator plans to award the gas distribution permits for Nesebar and Ravda by the end of 2006. The bid submission deadline for the Sliven gas permit expires next Tuesday. The offers will be unsealed on October 3.
Source: Dnevnik (25.08.2006)

Bulgargaz, the state-owned gas distribution company, is once again engaged in negotiations with Russian gas monopoly Gazprom on the terms for the agreement for the transit of Russian natural gas via Bulgarian territory, Dnevnik learned from a Bulgargaz source. Bulgargaz executive director Lyubomir Denchev and sales director Dimitar Gogov are in Moscow for the purposes of the bilateral talks. The Bulgarian energy ministry refused to confirm officially the trip to Russia of the Bulgargaz executives and to release any information about the ongoing talks. The Russian side has suggested to extend by 20 years the gas transit agreement which expires in 2010. Moscow is ready to boost the transit traffic but has also demanded a price hike. Under the existing deal, Bulgaria is paid a transit fee in the form of natural gas at USD 82 per 1,000 cu m, almost three times lower than the current market prices. The gas deliveries under this deal amount to 1.4 bln cu m annually or almost half the domestic consumption for such a period. Sources told Dnevnik the Bulgarian side has proposed that the transit fees are increased gradually through 2012 to prevent a spike in domestic gas prices which could reach 20-40 per cent.
Source: Dnevnik (25.08.2006)

Bulgaria will pump natural gas to Romania through a 13 km pipeline that will connect Ruse and Giurgiu on the opposing banks of the Danube, Bulgarian news agency BTA quoted Romanian newspaper Evenimentul Zilei as saying Thursday, August 31. The Romanian publication said the project was kept on the back-burner for the past couple of years due to lack of financing. The project for the construction of the 1.5 bln cu m pipeline was discussed during the recent visit to Bulgaria of the Romanian economy minister Codrut Seres. According to Evenimentul Zilei, the pipeline will pump Russian gas to household customers in Giurgiu and will offset the fuel shortage that the capital Bucharest faces during the winter. Bulgargaz, the state-owned gas distributor, and Germany's Wintershall, which holds the gas distribution permit for the Giurgiu region, are already negotiating on a supply contract, said Kiril Gegov, chief executive director of the Bulgarian outfit. Initially, the pipeline will supply 100 mln cu m of gas annually to household customers in Giurgiu. Bulgargaz does not rule out an increase in that volume if industrial consumers joins the gas network. The power regulators of the two countries have already discussed the transmission charges.
Source: Dnevnik (01.09.2006)

Gas trader Dexia Bulgaria, 49 per cent-owned by local fertiliser plant Agropolychim, will build the 13 km cross-Danube gas pipeline between Ruse and Giurgiu, said Agropolychim executive director Vasil Alexandrov. Gas supplier Wintershall AG owns 51 per cent of Dexia Bulgaria. The new pipeline will service mainly household customers in Giurgiu, Romania. Dexia will invest EUR 9 mln in the project which already at the geological study stage. The pipeline will pump 1.5 bln cu m of natural gas annually. Bulgargaz, the state-owned gas distributor, will act as transmitter despite statements by its CEO that the pipeline is a joint venture with Wintershall. One moot aspect of the project is whether the gas volumes will be billed as delivery or transit. Bulgargaz has insisted that the operation of the pipeline should incur delivery charges of 19.73 levs/1,000 cu m per 100 km. In contrast, the view of the Bulgarian power regulator is that the project will represent gas transit. Bulgargaz' refusal to consent to a transit charge is believed to be motivate by the desire of the company to retain its monopoly position. Dexia Bulgaria buys 100 mln cu m of natural gas annually from the local Galata deposit operated by Britain's Petreco.
Source: Dnevnik (04.09.2006)

The latest high-powered summit expected to jump-start the dormant Burgas-Alexandroupolis oil pipeline project ended Monday in Athens with nothing more than a general purpose political declaration in support of the initiative. The meeting between Russian president Vladimir Putin and Bulgarian president Georgi Parvanov hosted in Athens by their Greek counterpart Carolos Papoulias wrapped up with the adoption of a document committing the 3 nations to the signing of an intergovernmental agreement on the project by the end of 2006. The endorsement of the agreement would allow the 3 partners to proceed with the technical aspects of the project. The heads of state agreed in Athens that the creation of an international corporation to design the pipeline should be accelerated. Athens, Sofia and Moscow are yet to discuss how they are going to share out the new company. Initially, the partners agreed on a 33 per cent three-way shareout but later Russia demanded first 51 per cent and then 90 per cent. State-owned gas distributor Bulgargaz and Universal Terminal Burgas will represent Bulgaria in the project. TNK-BP, Transneft and Rosneft are the Russian participants while the Thrace consortium, comprising Latsis and Hellenic Petroleum among others, will represent the Greek side. The pipeline could be up and running by 209-2010, Rosneft CEO Sergei Bogdanchikov was quoted as saying Monday by news agency Reuters. The cost of the 280 km Bourgas-Alexandroupolis pipeline is estimated at EUR 700 mln. The facility will transport crude oil delivered by tankers to the Bulgarian Black Sea port of Burgas from the Russian port of Novorosiisk.
Source: Dnevnik (05.09.2006)

The government would like to see the Sofia district heating company go private through a competitive procedure, said economy minister Rumen Ovcharov. The utility should be acquired by a strategic investor with long-term commitment to the development of the company, said the government official. Ovcharov met late last week with representatives of the World Bank and the EBRD which are loan-financing the rehabilitation of the company's transmission network. The government is proposing to divest 100 per cent its 42 per cent stake in the utility and for the Sofia municipality, which controls the remainder, to do the same. An advisory commission made up of representatives of the government, the Sofia municipalities and the creditors will be set up for the privatisation procedure. The World Bank and the EBRD have suggested to hire a company to advise the privatisation procedure. The idea is seconded by the municipality. The energy ministry and the creditors are backing a quick and transparent privatisation procedure, an approach that is not supported by the municipality. The utility should not be sold before it gets back into shape, said Sofia city mayor Boiko Borisov. There is yet no agreement on who should be in charge of the sell-off: the Sofia Privatisation Agency, the Privatisation Agency or a third party. The experts anticipate glitches in the procedure due to the complicated ownership structure of the company.
Source: Dnevnik (11.09.2006)

Bulgargaz, the state-owned natural gas distributor, has submitted for review by the power regulator a proposal to hike domestic prices by BGN 20 to BGN 322 per 1,000 cu m without taxes. This was bad news for the heating companies which consume just over 1 bln cu m of natural gas annually. The Sofia district heating company, expected to consume 800 mln cu m of natural gas in 2006, said it will finish the year in the red if the regulator rubber-stamps the new tariff.
Source: Dnevnik (13.09.2006)

Bulgarian state-owned gas distributor Bulgargaz has warned that the non-payment of some BGN 130 mln in gas supply bills by the district heating companies could leave the company with no cash to pay for the fuel it buys from Russia's Gazprom. The issue with the mounting debts of the heating companies resurfaces on the eve of the new round of negotiations with Gazprom on the demands of the Russian gas monopoly for a revision of the bilateral gas agreement which would automatically jack up domestic gas prices. At the same, time Bulgargaz has asked the Bulgarian power regulator to approve a 6 per cent hike in domestic gas prices as of October. The big gas guzzlers in the chemical, metallurgical and ceramic industries are urging the regulator to postpone the tariff hike because it would damage the competitiveness of their output. The fears of the major industrial consumers stem from estimates that a tweak in the Gazprom contract would translate into a 15-25 per cent rise in gas prices by the end of the year. Bulgargaz data shows that the district heating companies in Sofia, Plovdiv, Pleven, Varna, Burgas, Shumen and Vratsa collectively owe some BGN 131 mln in unpaid gas delivery bills. The Sofia heating utility, which accounts for 28 per cent of domestic gas consumption, is by far the biggest debtor with BGN 97.4 mln in unpaid bills. At the same time, the company is owed BGN 160 mln by household customers.
Source: Dnevnik (18.09.2006)

Following the numerous breaches established at Toplofikatsia of Sofia, minister of economy and energy Rumen Ovcharov appointed check-ups a the heating utilities in Varna and Rousse. Working groups will analyse the way in which the cost price of heating is set and the spending of funds at the two companies between January 1, 2005 and June 30, 2006. The inspections will continue for 30 business days. A check-up of the readiness for the upcoming heating season will also be conducted at the utility in Shumen. The general shareholders' meeting of Toplofikatsia of Sofia, which was scheduled for September 15, was postponed until the end of the month, because the representatives of the majority owner, the Sofia municipality, did not turn up. The meeting had to discuss the dismissal of two board of directors' members, Georgi Nenkov and Georgi Rogachev. The debts of heating utilities in Bulgaria to Bulgargas currently total BGN 131.5 million, up by BGN 21.2 million since August 2005. The utilities account for about 35% of the total natural gas consumption in Bulgaria.
Source: Pari (18.09.2006)

Sofia's heating utility Toplofikatsia will auction off luxurious items used by former CEO of the company Valentin Dimitrov. Boats and water jetskis have drawn the strongest interest of the five bidders expected to take part in the auction. The total value of the items that will be auctioned off stands at BGN 50,000. The proceedings will be used for the settling of part of Toplofikatsia's debts towards Bulgargas. The sum, however, is an insignificant part of the total liabilities of the company, which exceed BGN 100 million.
Source: Pari (19.09.2006)

The major industrial consumers of natural gas are campaigning against the annexes to their supply contracts with state-owned gas monopoly Bulgargaz. The Bulgarian Fertiliser Industry Association and the branch chamber of the ferrous and non-ferrous metallurgy have sent a letter to energy minister Rumen Ovcharov requesting a meeting to discuss the proposed annexes which are related to the pending revision of Bulgaria's gas supply agreement with Russia's Gazprom. The companies behind the letter account for 45 per cent of domestic gas consumption. The industrial consumers fear a spike in gas prices in early 2007 which could force some companies to shut down or scale down their production operations. The talks with Gazprom are ongoing but should wind up by the end of the summer. The Russian side is seeking changes to the agreement that will allow it to pay in cash for the transited fuel. Under the current deal, some of the payments are made with gas supplies which allows Bulgaria to maintain low domestic prices. According to unofficial estimates, a revision of the agreement with Gazprom would add 15-25 per cent to domestic gas prices. The gas supply contracts that the major industrial customers have with Gazprom are annexed on annual basis to include a consumption forecast for the respective year. These forecasts are then used to calculate the volumes that Bulgargaz orders for delivery from Russia. Both Bulgargaz and its clients are obliged to pay for the ordered volumes regardless of whether they are used or not. The industrial consumers argue that they would be unable to preorder in the absence of any price visibility.
Source: Dnevnik (20.09.2006)

Monopolies feature heavily in Top 100 For a fourth consecutive year the National Electric Company (NEK) has remained a leader in sales income, according to the Top 100 ranking prepared annually by the Bulgarian Chamber of Commerce and Industry (BCCI). In 2005 the national electricity transmission company registered a 8.15-percent increase in sales to BGN 2.39 billion. Other strong performers in sales income include the Bulgarian Telecommunications Company, Petrol, Nafta Trading, Maritsa Iztok thermal power plant, Overgas Inc. However, last year's leaders like Kremikovtsi, Lukoil Neftochim, Kozloduy nuclear power plant and the electricity distribution utilities are not in the ranking this year. The absence of the first two is due to the fact that they did not present their reports on time, while the others posted losses, Alexander Dimitrov of the BCCI explained. The surprise this year is OMV's third position. The year 2005 was also very successful for Stomana Industry and Navigation Maritime Bulgare. The biggest sales growth - nearly 80-fold - was registered by GlaxoSmithKline, which is ranked 29th in Top 100. Nearly all companies on the list are with foreign equity participation. Small and medium-sized companies find place in BCCI's two other rankings. For a second time the chamber names the best performers in terms of financial profitability (profit to equity) and economic efficiency (profit to total assets). Substantial changes are also observed in the ranking of holdings. Bulgartabac and Festa Holding have dropped out of the list and Bulgargas is first with a net profit of BGN 11.664 million. It is followed by Industrial Holding, which has shifted from the eighth position.
Source: Pari (21.09.2006)

NEK, BTC and OMV lead '05 domestic sales rankings National power grid operator NEK, telecom BTC and fuel retailer OMV lead the Top 100 domestic sales rankings for 2005 prepared by the Bulgarian Chamber of Commerce and Industry. The 8th annual edition of the rankings is based on the financial reports, stock exchange filings, audits and otherwise publicly disclosed corporate information from some 5,000 local companies. The sales total of the companies included in the survey rose 30.7 per cent to BGN 56 bln versus a nation-wide average growth of 14.2 per cent. The rankings are dominated by energy, telecom, construction, transport and business service companies. NEK's BGN 2.387 bln in sales for 2005 (+8.15 per cent y-o-y) ensured it remains in the top spot for the 5th year in a row. It is followed by BTC with BGN 1.014 bln in sales (-2 per cent y-o-y) and OMV Bulgaria with BGN 576 mln (+94 per cent y-o-y). Drug maker GlaxoSmithKlein posted the highest sales growth - in excess of 8,000 per cent, while the Droujba Glassworks turned in the best performance in terms of profit per BGN 100 of sales. The biggest profit-makers among the domestic holdings and economic groups were Bulgargaz (BGN 111.7 mln), Industrial Holding Bulgaria (BGN 29 mln) and Videolux Holding (BGN 25.8 mln).
Source: Dnevnik (21.09.2006)

Investment banks, consortia and international advisory companies are eligible to consult the privatisation of the Sofia district heating company, it was announced Monday after a meeting of the working group in charge of the procedure. The successful candidate will have to devise the privatisation format for the company and will receive remuneration from the EUR 15 mln provided for the rehabilitation of the transmission network by the EBRD. The EBRD has committed EUR 30 mln in total. Half of the amount has been absorbed. The remainder will be made available after the start of the privatisation procedure. The World Bank has contributed EUR 26 mln for the reconstruction of the utility with a further EUR 30 mln coming from the Kozloduy International Decommissioning Support Fund. The government, a 42 per cent shareholder in the utility, and the majority owner, the Sofia municipality, are pushing 2 different sell-off approaches. The economy ministry insists that the utility should be divested 100 per cent while the municipality advocates to spin off the transmission and power generation operations and offer for sale only the transmission division.
Source: Dnevnik (26.09.2006)

The recognised debts of Nova Plama exceeded BGN 300 million, after the three receivers of the bankrupt refinery submitted the list of creditors to the Pleven district court. A total of BGN 60 million were added to the BGN 240 million liabilities accumulated as a result of the failed rehabilitation plan of the company. Nova Plama owes BGN 3,846,072 and BGN 91,274 to Bulgargas and the national Elelectric Company (NEK), respectively. The State Receivables Collection Agency (SRCA) claims receivables for BGN 47,205,014. Nova Plama was declared insolvent for the second time at the demand of Jorset Holding, the successor of First Private Bank and Mineralbank.
Source: Pari (27.09.2006)

Natural gas prices rise insignificantly Natural gas prices in Bulgaria will jump by 1.86% to BGN 308.58 per 1,000 cu. m, without VAT, in the fourth quarter of 2006. That emerged after an open-door meeting of the State Energy and Water Regulation Commission (SEWRC) on Tuesday. Bulgargas initially requested a price increase by 6.57% due to the higher price of gas supplied by Gazexport. The SEWRC will take its final decision on the new prices at a meeting on Thursday. Natural gas prices in Bulgaria are revised quarterly and depend on the prices of oil, the exchange rate and the requested quantities. The regulator set a price of BGN 302.95 per 1,000 cu. m for the third quarter of 2006.
Source: Novinar (27.09.2006)

The 3 receivers of Pleven-based oil refinery Nova Plama submitted for review Tuesday to the Pleven regional court a list of the company's creditors and their dues. The biggest creditor on the list is the State Receivables Collection Agency which is owed BGN 47.205 mln in back taxes and fees by Nova Plama. The list also features a BGN 3.846 mln debt to gas distributor Bulgargaz and a BGN 91.274 mln debt to national power utility NEK. The new list of creditors is not related to the recovery plan of the refinery approved in 1999. Under that plan, the refinery has rescheduled the payment of BGN 241 mln in debts over a 35-year period. However, the creditors have moved a bankruptcy petition against Nova Plama, claiming the recovery plan is making no progress. An appeal of the bankruptcy proceedings against the refinery, whose main installations have been idled since end-1999, will be heard by the Supreme Cassation Court on November 9.
Source: Dnevnik (28.09.2006)

Bulgaria's National Electric Company (NEK) and Italy's Enel are signing a memorandum of understanding on Wednesday concerning feasibility studies for the construction of additional electricity-generating facilities on the site of thee Maritsa Iztok 3 thermal power plant (TPP). The capacity of the new plant will be about 600 mW. The Italian company is a majority partner with NEK in Energy Company Maritsa Iztok 3 and has committed to upgrade the TPP's units and install desulphurising facilities. The plans for a new plant were first unveiled in December 2005. Later on it emerged that Enel would invest some EUR 15 billion in the region. Enel is also expected to sign a memorandum with Bulgargas on the development of a gas pipeline from Bulgaria via Macedonia and Albania to Italy, which will parallel transport Corridor No. 8.
Source: Sega (04.10.2006)

Italian utility Enel plans to invest 900 mln euro in a 640MW coal-fired power plant in Bulgaria, to boost its generation capacity in the Balkan state to 1480 megawatts, its chief executive was quoted as saying Wednesday by news agency Reuters. Fulvio Conti signed a memorandum of understanding to launch a feasibility study with Bulgarian power grid operator NEK for the new unit, which Enel wants to build next to its existing plant in the country's Maritsa Iztok power complex. 'The approximate future investment in the project will be around 900 mln euro,' Enel said in a statement quoted by Reuters. Enel is also upgrading its majority-owned 840MW plant under a 600 mln euro program aimed to boost the generator's capacity and bring it up to EU environmental standards, said Reuters. NEK holds a minority stake in the plant. If carried out, Enel's plan will join a number of other foreign-backed energy projects in Bulgaria, which is fighting to stay southeast Europe's leading power exporter after it closes two 440MW nuclear reactors ahead of EU entry next year, said the news agency. The nuclear plant provides around 40% of the Black Sea country's electricity. The Maritsa Iztok lignite coal complex accounts for another 30%. German utility RWE has expressed interest in building a 600MW plant in the complex, which also hosts Bulgaria's largest coal-fired plant, a 1,450MW unit currently being upgraded by Japan's Mitsui. U.S. energy firm AES is also building a 670MW coal-fired plant there, expected to come on line in 2011, said Reuters. Bulgarian Energy Minister Rumen Ovcharov has said Bulgaria must first to study the need for new generator and then decide how to proceed. Enel also signed a memorandum of understanding to look into developing a gas line between Bulgaria to Italy that will pass through Macedonia and Albania, but gave no further details.
Source: Monitor (05.10.2006)

Russia takes control over Balkan oil pipeline Russian companies will hold a 51-percent stake in the project for the setting up of the Bourgas-Alexandroupolis oil pipeline. The remaining stake in the project will be distributed equally between Bulgaria and Greece, Russian news agency Interfax reported after the visit of Russia's prime minister Mihail Fradkov to Athens. The governments of the three countries are expected to sign the agreement for the establishment of the pipeline by the end of 2006. Russia's Transneft, Rosneft and Gazprom will hold the majority stake in the project. The companies representing Bulgaria and Greece in the project will hold 24.5-percent stakes, respectively. Bulgaria expressed approval of the new distribution of stakes in the project at the meeting of the presidents of the three countries in Athens in September. Project costs are estimated at EUR 783 million. The oil pipeline will be 300 km long and will convey 35-50 million tonnes of Caspian oil annually.
Source: Pari (09.10.2006)

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)

Bulgarian gas distributor Bulgargaz and Russia's gas monopoly Gazprom should set up a joint venture for the transit of Russian natural gas via Bulgaria. This proposal was made by Sofia during the negotiations on the revision of the long-term agreement for the transit of natural gas, Dnevnik learned from 3 independent from each other sources. The idea of the Bulgarian gas company is for the new outfit to service 1.4 bln cu m of gas annually. In December 2005, Gazprom requested to start paying in cash for the transit via Bulgarian territory, a switch that will push up domestic gas prices. Bulgargaz has also requested to take current supply go-betweens Overgas Inc. and Wintershall out of the picture so that it can sign a direct supply deal with Gazprom. That would make possible a slight decrease in gas prices.
Source: Dnevnik (13.10.2006)

Bulgarian Economy and Energy Minister Roumen Ovcharov will inaugurate an automatic gas measuring station near Pokrovnik Village, Blagoevgrad Municipality. The station, built by Bulgargaz, will feed natural gas for supply of Blagoevgrad and Simitli.
Source: BTA (16.10.2006)

Bulgargaz will have to invest EUR 400 mln if it wants to take part in the Nabuko pipeline project. If the company decides to add a few new shareholders, having in mind that there are currently 4 companies that are interested, then this sum will be reduced. A list of 6 candidates as a contractors for the Nabuko pipeline projecting will be discussed by Nabuko Company Pipeline Study on its meeting in Istanbul that will be held on November 2. Currently Bulgargaz is rated with equal chances like the Turkish Botash, Romanian Transgas, Hungarian MOL and Austrian OMV.
Source: Monitor (17.10.2006)

The EIB is ready to bankroll half of the cost of the Burgas-Alexandroupolis oil pipeline, reports news agency ITAR-TASS, quoting the chairman of the bank's board Philippe Maystadt. Maystadt's statement for the agency further clarifies that the financing will be provided for the construction of the pipe on Greek territory. In April 2005, Greece, Bulgaria and Russia signed a memorandum on the construction of the oil pipeline. In September 2006, the 3 partners agreed to establish by the end of the year an international corporation to design the facility. A new trilateral agreement on the project is also expected to be inked before end-2006. Moscow is insisting to get a 51 per cent share in the corporation with Athens and Sofia splitting the balance. The Russian media have reported that this demand has already been conceded. Bulgaria recently decided to scale its share in the project down to 24.5 per cent. The 300 km Burgas-Alexandroupolis pipeline will pump 15 mln to 35 mln tons of Russian oil to Mediterranean terminals, bypassing the Dardanelles and Bosphorus straights, said ITAR-TASS.
Source: Dnevnik (23.10.2006)

The Pleven district heating company said it will invest EUR 13.3 mln in a new General Electric gas-fired turbine. The exhaust emissions from the operation of the 32MW turbine will be used to produce steam. The trial runs of the turbine are scheduled for Feb-Mar '07 with the official launch seen by Apr. The utility is owned by Sofia-based Metroni OOD.
Source: Dnevnik (07.11.2006)

Nexcom, the local telecom start-up, said it completed in late October the rerouting of all telecom traffic to its just-finished fibre-optic backbone. Nexcom has looped Sofia, Plovdiv, Stara Zagora, Sliven, Varna, Burgas and Veliko Tarnovo and plans to add over the next 3 months Ruse, Pleven, Shumen, Haskovo, Dobrich, Yambol, Vratsa and Blagoevgrad. The new infrastructure, boasting VOD, conferencing and multimedia application readiness, will serve as a launch pad of Nexcom's WiMax network. BTC, vivatel, Mobiltel, Globul and CableTEL are on the list of local cable and telecom carriers with proprietary fibre-optic backbones. Several major utility companies like national power grid operator NEK and gas distributors Bulgargaz and Overgas have also installed sections of fibre-optic cables with their main infrastructure.
Source: Dnevnik (09.11.2006)

Russia is pressing Bulgaria for a 40 per cent - increase in the price of natural gas from January 1, 2007. Gazprom has put dictatorial demands on Bulgaria, Focus Agency released citing a Russia-side participant in the negotiations. The proposal drives at an equalization of the prices of the gas - the gas prices which Bulgaria receives as a barter payment for the transit of gas and the market prices. If this becomes a fact, the gas price for consumers will be upped by 40 per cent from January 1, 2007, the source informed. At present, Bulgaria consumes 3 billion cubic meters of gas. Of them, 1.3 billion cubic meters of gas are paid at a price of USD 82,5 for 1,000 cubic meters as a barter for the transit of the fuel to Turkey, Greece and Macedonia. The other 1.7 billion cubic meters Bulgaria pays at prices on the international market, which is about USD 360. Russia's proposal means that Bulgaria pays all 3 billion cubic meters at the price of the international market. "No such official proposal has been received in Bulgargaz," sources from Bulgaria's Ministry of Energy and Economy informed. But according to well-informed, it is quite possible that with this information Moscow tests Bulgaria if it is ready to yield. There is a struggle of two lobbies going in Gazprom itself - a softer and a harder lobby regarding Bulgaria. Over a month and a half ago, Bulgaria sent a counter proposal for alternations in the contract. The counter proposal contains more favorable for Bulgaria conditions. No answer has been received so far, sources closely following the negotiations explained for Standart.
Source: Standart (15.11.2006)

‘Increase of the prices of natural gas in Bulgaria by 40% after January 1, 2007 is impossible’, the Bulgarian Minister of Economy Rumen Ovcharov said, cited by a reporter of FOCUS News Agency. Ovcharov noted that the Cabinet has been negotiating with the Russian Gazprom since the beginning of the year with the clear knowledge that this is an energy resource, which is not guaranteed to anyone. Ovcharov says there were two options for Bulgaria – either leave the contract unchanged, which would lead to a number of complications after it expires in 2010, or re-negotiate contract clauses seeking a strategic partnership.
Source: Agency Focus (16.11.2006)

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)

The price of natural gas will gradually increase until 2012, a participant in the negotiations with Gazprom said for the Standart. It is expected that there will be a slight increase in the first years but the hike in prices will be more tangible at the end of the period. However, the exact percentage of increase is still unknown. There are a lot of options but the negotiations are focused on three possibilities. It is still unclear whether the transit tax of USD 1.67 per 1,000 cubic meters will remain valid.
Source: Standart (29.11.2006)

Pan-European voice and data network operator Interoute Ltd Telecom Partners Network (TPN) Wednesday officially announced its arrival on the Bulgarian market. Interoute's expansion reached Bulgaria earlier this year with the acquisition of Telecom Partners Network, a leading Bulgarian telecommunications company offering a wide range of voice, data, and Internet services to corporate customers through its national MPLS network. The Interoute fiber-optic network has now reached Southern Italy and Sicily, Serbia and Romania where the company is building links to the Balkan region, Greece and Turkey. The company plans to install an info pipe linking Sofia and Istanbul going further east, said Gareth Williams, president of global markets at Interoute. A fiber-optic backbone linking Sofia, Plovdiv, Varna and Veliko Tarnovo should be in place within 2 years. Interoute, which has slated EUR 10 mln for investment in Bulgaria and Turkey, said it will upgrade existing infrastructure with no spending on new info pipes. Interoute is in talks to lease dark fibers from local cable operator CableTEL and Bulgartel, the telecom division of gas distributor Bulgargaz, which have deployed fiber-optic infrastructure in the direction of Plovdiv and further south-east to Turkey. TPN will focus no large corporate customers, said marketing and sales director Milen Shumanov. The corporate client base of the company numbers 200. The telecom carrier plans to poach over the next 2 years 5-10 per cent of the fixed-line revenues that BTC, the former telecom monopoly, generates from business clients. In Bulgaria, Interoute will offer high-speed Internet for business customers, VPN, IP telephony and iSip, a corporate VoIP service.
Source: Dnevnik (07.12.2006)

The tardy one-year long negotiations between Bulgargas and Gazprom are likely to result in a long-term contract until 2030, at the proposal of economy and energy minister Rumen Ovcharov. In order to cushion the price hike, Rumen Ovcharov also suggests that Gazprom and Bulgargas should establish a joint venture company that will manage the equipment for the transit of Russian natural gas through Bulgaria. In return, Gazexport will supply the natural gas directly to Bulgaria without the help of the present intermediaries Overgas and Winterschal. The volume of the natural gas transited through Bulgaria will increase along with the transit fees under the conditions of the new contract. The volume is expected to reach 24 billion cu. m annually. The agreement will cause the price of natural gas in Bulgaria to rise gradually and will secure a stable economy. Gazprom and Serbia recently negotiated the details on the setting of a gas pipeline that will go through Bulgaria, Serbia and Croatia and will reach Italy. The project is estimated at USD 800 million. The pipeline will convey 20 billion cu. m of gas annually. It is envisaged to go through Bulgaria, but it is also possible that the Serbian stretch be connected directly to the Blue Stream pipeline that goes from Russia to Turkey. There is a real possibility that Russia may set up an alternative pipeline, circumventing Bulgaria, which has happened once already. Bulgaria lost 13 billion cu. m of transit gas with the setting up of the Blue Stream pipeline. This time Bulgaria faces the possibility of losing 20 billion cu. m of transit gas annually.
Source: mediapool.bg (07.12.2006)

The price of the natural gas may increase by 10 per cent from January 1, 2007. This would happen if until the end of the year Bulgargaz do not sign a new contract for transit of Russian fuel through Bulgarian territory. This week the boss of Gazprom Mr. Alexey Miller arrives in Sofia to sign the new agreement. The council of the governing coalition within a few days decides whether to change or not the contract for supply and transit of Russian natural gas. At the latest meeting the Chairman of NDSV Mr. Simeon Sakskoburgotski and of DPS Mr. Ahmed Dogan asked for some time in order to become familiar with the two projects for memorandum of the Ministry of Economy and Energy.
Source: Novinar (11.12.2006)

State-run gas distributor Bulgargaz has proposed to the local power regulator to approve a 4.06 per cent increase in gas prices from January 1, 2007. The move could add BGN 12 to the price of gas which will reach BGN 321.11 per 1,000 cu m without taxes. The regulator should review the proposal by the end of the year. In a press release, Bulgargaz said the hike is necessary because the regulator lowered the price increase proposed by the gas distributor for Q4. At the time, Bulgargaz asked for a BGN 20 hike to BGN 322.87 per 1,000 cu m but the regulator approved only an increase to BGN 308.58. Bulgargaz said the latest proposal is not related in anyway to the ongoing negotiations between Bulgaria and Russian gas monopoly Gazprom on gas transit and delivery agreement. Bulgaria's ruling government coalition is expected to decide this week whether or not the agreement, due to expire 2010, will be updated. The Russian side is demanding that Bulgaria start paying cash for the gas it receives at discount prices, allowing it to maintain low domestic prices. At the moment, Bulgargaz is paid for the transit of Russian gas with gas deliveries at USD 83 per 1,000 cu m versus a market price of USD 257. Bulgaria's annual consumption of gas is around 3 bln cu m; almost half of that volume comes from gas deliveries made instead of cash transit charges.
Source: Dnevnik (12.12.2006)

Bulgarian state-owned gas distributor Bulgargaz and Gazprom Export, a subsidiary of Russian natural gas monopoly Gazprom, will sign today a memorandum on supply with Russian gas and the transit to third countries which will be in force until 2030, the press office of the Bulgarian government announced last Friday. The memorandum would serve as a baseline for the early termination of the existing bilateral agreement, which does not expire until 2010, and the signing of a new pact in line with the demands of the Russian monopoly. According to Bulgaria's energy ministry, the document will ensure a stable macro-economic environment and will put Bulgaria on par with many other European gas consumer that have supply deals with an equal term of validity. The first adjustment to domestic gas prices in the aftermath of the new bilateral agreements will happen in April 2007. An anonymous source quoted by news agency Reuters said gas prices will jump 20 per cent in the second quarter of 2007 and will add a further 40-45 per cent over the current tariff in 2011-2012. Bulgarian energy minister Rumen Ovcharov Sunday told the Bulgarian National Radio that domestic gas prices will rise 10 per cent in 2007 and that the gradual hike will continue for 6 years. Under the memorandum, gas prices in Bulgaria should reach 95 per cent of the going market levels by 2012. The Russian side is demanding that Bulgaria start paying cash for the gas it receives at discount prices, allowing it to maintain low domestic prices. At the moment, Bulgargaz is paid for the transit of Russian gas with gas deliveries at USD 83 per 1,000 cu m. That quote will remain as a reference price in 2007, said a source close to the Bulgargaz management. At the moment, the Russian gas delivered in addition to the in-kind transit payments costs Bulgaria USD 221.75 per 1,000 cu m.
Source: Dnevnik (18.12.2006)

The coalition partners in the Bulgarian government approved the draft memorandum between Bulgargas and Gazprom Export, a subsidiary of Russia's Gazprom, the cabinet press office said. The memorandum guarantees Russian natural gas supplies to Bulgaria and transit quantities to third countries until the end of 2030. The document will be signed at a ceremony on Monday by deputy minister of economy and energy Valentin Ivanov, who also chairs Bulgargas management board, and by Gazprom's chairman, Alexey Miler.
Source: Agency Focus (18.12.2006)

Natural gas price in Bulgaria will increase gradually till 2012, when it is expected to reach the levels of the gas market in Europe, it transpired from the memorandum between Russia's Gazprom and Bulgaria's Bulgargaz. The memorandum was signed yesterday by Bulgaria's Council of Ministers. The document guarantees Bulgarian-Russian "gas relations" till 2030. The papers will be kept secret for quite some time as the Russian monopolist does not want the other European countries learn its favorable and yielding policy towards Bulgaria, well-informed sources explained. The Russian side refused to name the exact hikes in the gas price in the years. The rises will start next April by a 10% increase. The next hike is expected to be at the beginning of July, 2007. In the rest of the period, the prices of gas will be altered every six months. What is quite positive for Bulgaria is that it will receive 4 times bigger money from transit taxes. So far, the contract envisaged a barter deal. Thus, in stead of receiving $1.67 for 100-kilometer transit of 1,000 cubic meters of gas, Bulgaria used to get gas. From January 1, Bulgaria will receive transit taxes as the guaranteed receipts till 2030 will increase from 1.2 to 4.7 billion levs (1euro=1.95levs). "The transit taxes will be actualized every year by the index of inflation in the EU," Bulgaria's Minister of Economy and Energy, Rumen Ovcharov, stated. "This is a precedent in a contract of Gazprom," Minister Ovcharov said further. The positive financial results for Bulgargaz from this indexing will be over 900 million levs. The transit taxes may increase to 7.8 billion levs if the transit of gas through Serbia for Europe is realized. This will happen after construction of new transit gas pipelines. "By 2030, the quantity of transited gas through the territory of Bulgaria will increase to 17,8 billion cubic meters," Alexey Miller, Chairman of Gazprom's Management Committee, stated. The transited gas may be raised by another 5-6 billion cubic meters if pipelines to Serbia are constructed. Thus, Gazprom is turning Bulgaria into a central gas distributor in the region. The well played cards by the Bulgarian politicians in the negotiations with Gazprom have left a door open for new negotiations in 2008, Standart learnt. "The tender for the construction of NPP Belene was a good chance in the negotiations with Gazprom. This is the reason for the 3-month delay of the selection of executor of the NPP Belene project," Minister Ovcharov stated after the signing of the new contracts with Gazprom.
Source: Standart (19.12.2006)

The new contract Signed between Bulgargas and Russia's gas monopoly Gazprom guarantees an increase in the transit fees and the transit of natural gas through Bulgarian territory. The contract also guarantees deliveries and a gradual transition towards market prices until 2012. Bulgaria will pay the natural gas at market prices and Russia in return will guarantee that the transit is carried out through the territory of the country, under the new contract, economy and energy minister Rumen Ovcharov said. Bulgaria's guaranteed revenue from transit by the end of 2030 will grow from BGN 1.2 billion to BGN 4.7 billion. If the most optimistic forecasts are fulfilled, the revenue may amount to BGN 7.8 billion. The prices at which Bulgaria will pay the natural gas were not disclosed. The transit tariffs in turn will grow each year depending on the inflation of the EU.
Source: National radio (19.12.2006)

The State Commission for Energy and Water Regulation (SCEWR) approved a 4.06-percent increase in the price of natural gas in the first quarter of 2007. The price will go up from BGN 308.58 to BGN 321.11 per 1,000 cu. m (VAT excluded) at the proposal of Bulgargas. SCEWR reviewed the initial proposal for a 1.89-percent increase in the price due to an order for the supply of 20 million cu.m of gas which Bulgargas received from the Varna thermal power plant (TPP) last week. The gas supplies will secure the normal functioning of the TPP in the first three months of 2007, when units three and four of the Kozloduy nuclear power plant will not operate. Bulgargas does not have the 20 million cu. m of gas in stock and SCEWR has decided that the purchase should be calculated in the price as well.
Source: Pari (27.12.2006)

A majority is taking shape in the Sofia municipal council that wants to settle the outstanding payments of stricken Sofia district heating company to gas supplier Bulgargaz in a debt-for-equity deal, Dnevnik learned from councillors on condition of anonymity. The municipality is likely to resort to the swap if no other way is found to turn around the dismal fortunes of the company. The scheme has already been employed once and as a result the state acquired a 42 per cent stake in the heating company.
Source: Dnevnik (16.01.2007)

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

The Italian company Enel wants to take 49 per cent in the project for the construction of NPP Belene, said Piero Gnudi, president of the company as quoted by Reuters. The company is ready to invest two billion euro in Bulgaria and another 1.5 billion in Romania, announced officials with Enel earlier. In Bulgaria the money will be used for the construction of the second nuclear power plant while in Romania they will be provided for the modernization of the power distribution network in the country. In Bulgaria the Italians are also involved the project for TPP Martiza Iztok 3. Enel has proposed to modernize the existing units and to construct new ones of about 600 mega watts each. The company has also signed a contract with Bulgargaz for studying the possibilities for the construction of a pipeline from Bulgaria, Macedonia and Albania to Italy that will be parallel to corridor No 8.
Source: Standart (19.01.2007)

The Sofia Municipal Privatisation Agency is seeking to hire a consultant for the privatisation of 56 per cent of the capital of the Municipal Insurance Company (MIC). The bid receipt deadline is March 19. The tender documents can be purchased until March 12. After the appraisal of the insurer is ready, the municipal council will decide on the sell-off format: auction, competitive procedure or bourse listing. It is expected that the municipal council will manage to unload the MIC stake before its term expires in October this year. Potential buyers would pursue the insurer, one of the nation's smallest with a market share of 0.76 per cent and January-September 2006 premium income of BGN 5.48 mln, mainly for its licence and steady position. Last year, local businessman Hristo Kovachki accumulated a 20 per cent stake in MIC after several equity transactions. Another local insurer, Lev Ins, had also notified to the municipality its interest in the company. According to municipal councillors, representatives of insurer Armeec had also inquired about the possible sell-off.
Source: Dnevnik (22.01.2007)

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

The contract for the transit of natural gas through Bulgarian territory signed between Bulgargas and Gazprom protects the interests of Bulgaria, economy and energy minister Rumen Ovcharov said. The contract guarantees the natural gas supplies, as well as an increase of the transit through the territory of the country. Bulgaria's revenue from gas transit by the end of 2030 is expected to total USD 4.7 billion.
Source: Pari (22.01.2007)

A group of Bulgarian industrial consumer of natural gas Monday issued a declaration demanding that the State Energy and Water Regulatory Commission repeal the price hike effected in early January as unlawful and ungrounded. According to the Bulgarian Federation of Industrial Energy Consumers, the power regulator failed to organise a public discussion of the hike proposal, effectively violating the Energy Act. Earlier this month, the domestic gas price was adjusted by 6.08 per cent at the insistence of state-owned gas distributor Bulgargaz. The domestic price of natural gas is set on the basis of a domestic consumption forecast, quarterly oil prices, the fluctuations of the U.S. dollar and the price of 1 per cent and 3 per cent sulphur content fuel oil. The federation contends that the regulator has overestimated domestic consumption and points out that the price of oil and of 1 per cent and 3 per cent sulphur content fuel oil have backed down. Yet another gas price hike is expected in April when the revised gas supply agreement with Russia's Gazprom takes effect. Energy minister Rumen Ovcharov said back in December that the increase will not exceed 10 per cent.
Source: Dnevnik (23.01.2007)

Bulgaria, Greece and Russia will sign an agreement for the construction of the Burgas-Alexandroupolis oil pipeline on February 7, said the Bulgarian regional development ministry. No information was immediately available on the parameters of the agreement or the concessions that Sofia made during the negotiations. Dnevnik learned from informed sources that the agreement does not resolve the dispute between Sofia and Moscow over the ownership of the Burgas terminal. If the Russian companies are granted control over the facility, they will also handle the fuel supplies pumped through the alternative Burgas-Vlore pipeline as well as Sofia's state reserve stocks which is seen by some experts as a threat to Bulgaria's national security. Russian companies Transneft, Rosneft and Gazprom Neft will own 51 per cent of the pipeline with 24.5 per cent shares each earmarked for Sofia and Athens. Russia has reportedly abandoned its demands to install Transneft as pipeline operator. Transneft will co-ordinate the supplies from the port of Novorosiisk to Alexandroupolis in Greece. The cost of the 280 km pipeline is seen at EUR 783 mln. It will pump 35 mln tons of oil annually, a capacity that could later reach 50 mln tons.
Source: Dnevnik (29.01.2007)

Melrose Resources will shortly commence a drilling programme of three firm and two optional wells in Bulgaria, news agency Dow Jones reported late last week. These will be the Izgrev, Obzor and Ropotamo wells. Melrose said, depending on drilling results, up to two further wells may be drilled. One well may test the Kamchia prospect. Melrose is 100 per cent owner and operator of the Galata gas field, offshore Bulgaria in the Western Black Sea. In addition, Melrose has a 100 per cent working interest in four exploration concessions offshore Bulgaria covering a total of over 10,000 sq m.
Source: Dnevnik (29.01.2007)

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

Bulgaria, Greece and Russia will discuss the text of the agreement for the construction of the Burgas-Alexandroupolis oil pipeline at a working meeting in Athens on February 7, news agency ANA reported on Monday. The final details of the agreement will be honed out at expert level, Greek regional development minister Dimitris Sioufas was quoted as saying. Last week, the Bulgarian government said the 3 parties to the project had reached consensus on the agreement and the document was to be inked on February 7. The meeting will take place in Burgas, said the Bulgarian regional development ministry, adding that Athens and Moscow were not backing off. The ministry reiterated that the agreement will indeed be signed on February 7.
Source: Dnevnik (30.01.2007)

Anton Petrov: Competitiveness is decided piece by piece Currently at the Stomana Industry site a new rolling mill is being built that will provide production of reinforcement steel and special steel products. The whole amount of the investment is EUR 45 mln. The new production line is installed by Italian Danieli, Stomana Industry is part of the Greek industrial group Viohalco that is also owner of Steelmet – Sofia, Lesko – Blagoevgrad, Sodia Med, Tempo Metal – Sofia, Thermocalibrating plant in Pernik, Sigma Is – Pernik, Steelmet Holding, Energy Solutions – Pernik, Prosal Tubes – Pernik, SID PAK Bulgaria – Sofia. When do you expect all construction works at the new facility within Stomana Industry park to be completed? - The construction works are expected to be completed until mid-2007 and the new facility to start production in October. Starting a brand new company is a long and difficult process but we are confident that until October it will be ready to start production. How this new facility will change the current situation at the company? - The new mill will be with a production capacity to 800 thous. tons which of course would not be reached immediately but having in mind the current production capacity of 700 thous. tons means that Stomana Industry will actually double its output. Within 2 years we expect that Stomana Industry will produce over 1.2 – 1.3 mln. tons steel products per annum. How do you rate Bulgarian market of steel products? Which markets will be Stomana Industry’s priority – foreign or domestic? -Our main priority will be the domestic market despite the low share that Stomana Industry currently has. Bulgarian steel market is still very small. Currently only 15% of Stomana Industry’s output is sold on the domestic market. With the building of the new rolling facility we will extend our product range and we expect that the share of our product that is sold in Bulgaria will increase to 30-40%. Bulgarian steel market is very dynamic and also has big potential as the metal products consumption is still very slow compared to the consumption in the early ‘90s that has been way higher or the consumption in some neighbor countries – like Greece for instance. If the total demand for reinforcement steel in Bulgaria is currently 350 – 400 thous. tons, in Greece it is about 2 mln. tons. There is some information that several companies have joined their forces and are trying to set dumping prices. Do you know if this is true and what is your view and reaction over such action? - We know about that case, we even called a meeting with these companies. We rate this as unacceptable and not proper activity. Such alliance forming is unacceptable because this is a sure way to set dumping prices and monopolizing certain field in the industry. The idea is simple – four companies are joining forces. They reach some big producer and demand to buy big volumes at a better price and than they earn as they sell the products at lower prices than the market price and thus they accumulate fast and easy cash. But this is just not the right way to do business – such actions cause great damages to the market as the demand and supply equilibrium is artificially changed. Do you think that the increase of gas prices is justified? - An increase by 4% since the beginning of the year and especially with such strange explanation – that TPP Varna does not have enough coal and is going to use gas instead is just ridiculous and outrageous towards clients. If for example some other company decides that it will also use gas in exchange of electricity, Bulgargas will have to increase gas prices once again as new clients has emerged. So lets say that we have one company that needs more gas, why all other companies will have to pay more? I just do not see any sense – if TPP Varna could not import enough coal why the other companies will have to pay higher gas prices? What are your expectations about the business having in mind the new contract with Gasprom? - I can not comment the new contract with Gasprom and if this increase that was negotiated before 2010 was absolutely necessary. There is not enough information that could help me to form my opinion. When within a year gas price increases by 30-35% it is obvious that there are not so many companies that will be ready to face such higher expenses. In our production process the gas price is forming between 5-8 of the total production cost of out products, but at fertilizing plants it is much higher. For sure this increase will affect the whole economy. Is the declaration against the new higher prices going to be the only reaction of the big producers? Aren’t you going to appeal in court? - We can not appeal as the deadline for appeals has already expired. As usual such major changes are often decided just before the Christmas holidays. Till the end we had the information that the increase will be by 1.7% and it will not reach 4%, but of course in the end without any discussion it was decided the increase to be 4%. But even if we had the chance to appeal the new prices – so what? Time goes by, situation changes, court cases are not solved. We had that bitter experience with the electrical energy fee – we did not win almost anything out of it. There are just so many ways to get round certain appeals. Is it necessary to play the mouse and cat game? The attractiveness of the Bulgarian economy is a combination of factors and here should be the Government – to do whatever needed to ensure economic growth, more job opportunities, higher wages and provide better life standard.
Source: Dnevnik (02.02.2007)

State-run corporations Bulgargaz and Technoexportstroy will represent Bulgaria in the International Project Company that will build the Burgas-Alexandroupolis oil pipeline. The make-up of the new joint venture is expected to be discussed by the government on Thursday when it is also scheduled to approve the draft of the pipeline agreement endorsed last week by the 3 participants in the project, Greece, Russia and Bulgaria. Location points have been designated at the Black Sea port of Burgas for the 2 unloading buoys that will service incoming tankers carrying oil for the Greece- and Albania-bound pipelines. A total of 3 independent of each other terminals will operate at the port. They will service the 2 pipelines and the Bulgarian state contingency reserve. The decision for the Bulgargaz/Technoexportstroy outfit makes redundant the specially incorporated company Universal Terminal Burgas which is co-owned by Technoexportstroy and the privately-run Frontier. The latter company learned from the media about the upcoming government decision. The trilateral agreement is likely to be signed on March 6 at the proposal of Greek regional development minister Dimitris Sioufas who has notified his Bulgarian and Russian opposite numbers. The Bulgarian state will not hold on to its stake in the pipeline for too long and will eventually offered it to private oil companies, said Bulgarian regional development minister Asen Gagauzov. The Burgas-Alexandroupolis oil pipeline is expected to be operational by 2011.
Source: Dnevnik (14.02.2007)

The private company Frontier will be out of the project for Bourgas- Alexandrupolis pipeline, said the Regional minister Mr. Asen Gagauzov yesterday. He will offer this to the government’s session on Thursday. So far the reasons for company’s leaving are yet not clear. Company’s owners are Mr. Eduard Manukian, Mr. Georgi Sotirov and Mr. Krassimir Georgiev. The latter is believed to have huge interests in the energy and to be close to the energy minister Rumen Ovcharov. Frontier said they were not informed about company’s falling out the project. The company says that in the past 2-3 months it was totally out of touch with the negotiations of the working group between Bulgaria, Russia and Greece. Frontier along with the state-owned company Technoexportstroy, which is one of the future concessionaires of the Trakia highway, established the company Bourgas Universal Terminal. The company said it had spent funds on preliminary project researches of the terminal, but they would decide on how to reimburse them after the government’s Thursday session.
Source: Sega (14.02.2007)

The International Project Company, which is to build and operate the Bourgas-Alexandroupolis oil pipeline will take control over the universal terminal of Bourgas as well. A similar development became possible after the Bulgarian government gave up its intentions to build a common infrastructure for oil pipelines to Alexandroupolis and Vlora. The terminal will now be split in three and used used by the companies operating Bourgas - Alexandroupolis and Bourgas - Vlora oil pipelines, as well as by the Contingency Reserve. Russia will control the terminal of Bourgas as Russian companies hold a 51-percent stake in the International Project Company. Bulgarian Technoexportstroy and Bulgargas Holding will acquire a 24.5% in the project. They will be able either to sell their stake or to provide the funding needed for the project, vice premier Ivaylo Kalfin said. Representatives of AMBO, which is to operate the Bourgas-Vlora pipeline supported the splitting of the terminal.
Source: Pari (16.02.2007)

Trilateral agreement on Burgas-Alexandroupolis pipeline deferred The signing of the agreement between Sofia, Athens and Moscow on the construction of the Burgas-Alexandroupolis oil pipeline has been postponed, the Bulgarian regional development ministry said on Monday, giving no further details. The ministry said the Russian side is expected to propose a new date for the signing within the current month. Sources told Dnevnik the delay was caused by the Russian side which was apparently having difficulties with the translation of the document. The same sources claim the signing ceremony will take place March 14-16 depending on a confirmation form the Greek hosts. The signing of the trilateral agreement is deferred until next week, Russian news agency RIA Novosti reported, citing informed sources. According to the online edition of Athens-based Naftemporiki, the signing of the agreement has been put off indefinitely. The Greek newspaper claims the insecurity shrouding the signing of the agreement stems from the Greek position on the deployment of elements of an U.S. anti-missile system in the Czech Republic and Poland which is interpreted by Moscow as supportive of Washington.
Source: Dnevnik (06.03.2007)

Russia, Greece, Bulgaria to sign oil deal next week Russia, Greece and Bulgaria will sign an agreement next week to build an oil pipeline between the Black Sea and the Aegean, bypassing the congested Turkish straits, the Kremlin said on Tuesday in a statement quoted by news agency Reuters. The statement said the three governments would sign the deal on the pipeline running from the Bulgarian port of Burgas to the Greek port of Alexandroupolis during Russian President Vladimir Putin's visit to Athens on March 14-15. In Sofia, the Bulgarian government said in a statement prime minister Sergei Stanishev will attend the signing. The three states have been discussing the pipeline for about a decade but Russia has pushed for a deal since winning Greek and Bulgarian agreement that three Russian state-controlled firms would share control of the pipeline, said Reuters. For years, the three governments disagreed on key issues such as who would build the pipeline, the ownership of the terminals and transit fees. They said last year that the project was finally approved and would be launched in 2009. Oil producers Rosneft and Gazprom Neft and crude oil pipeline monopoly Transneft will now share 51 per cent of the pipeline, ensuring Russia is in command. Greece and Bulgaria will share the remaining 49 per cent. According to Reuters, Sofia plans to hand its stake to state firms Bulgargaz and Transexportstroy but has said it could sell some or all of its share to oil majors such as KazMunaiGas or Chevron. Greece will participate with Hellenic Petroleum , Latsis group and the Greek unit of Gazprom, Petroleum Gas. The first stage of the EUR 700 mln pipeline will pump up to 200,000 barrels of Russian oil per day onto the Mediterranean market. A second stage could increase that volume to 700,000 bpd from around 2011. The agreement to build the pipeline could have a positive knock-on effect for another project, the Chevron-led Caspian Pipeline Consortium (CPC), which pumps oil from the Caspian Sea to the Black Sea, said Reuters. Russia has long resisted CPC's request to double the pipeline's capacity to around 1.4 mln bpd to accommodate rising oil production from Kazakhstan. Last year Rosneft, which is a shareholder in CPC, said it would only support the expansion of CPC if construction of Burgas-Alexandroupolis went ahead.
Source: Dnevnik (08.03.2007)

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

Although 2007 will see the first real steps being made for the implementation of the Nabucco gas pipeline, the project is facing a delay of roughly 12 months at a time when Russian gas monopoly Gazprom is doubling its efforts for the extension of its competing Blue Stream gas pipeline from Turkey to Western Europe in a bid to have the project completed simultaneously or even before the Nabucco facility. The 3,300 km Nabucco pipeline will pump 13.5 to 16 bln cu m of natgas annually from the Caspian region and Iran to Central and Western Europe. The pipeline project is developed jointly by Turkish state-owned company BOTAS, Bulgaria's Bulgargaz, Hungary's MOL Rt., Austria's OMV and Romania's Transgaz SA Medias. The participants should set by mid-2007 regional units that will take charge of the project and will apply for gas distribution permits from their respective native power regulator. A tender procedure should be launched by the end of 2007 for the preodering of the delivery volumes that the five companies will be using going forward. The delivery volumes are destined for each company's home market. The companies will preorder 12-15 bln cu m while the balance to 16 bln cu m will be placed on the deregulated market, said Dimitar Gogov, executive director of Bulgargaz. He said there's been interest from 6-7 unnamed gas traders so far. Gaz de France is holding talks to become the sixth shareholder to build and own the Nabucco gas pipeline, Gogov told Reuters on Tuesday. Gogov said talks with GDF were launched after negotiations with France's Total for the stake collapsed earlier this year. Bulgargaz has said talks for a sixth partner that would have an equal stake in the project, could be held also with Germany's energy majors E.ON and RWE . On Tuesday, OMV said the final decision to launch the project had been delayed due to extended talks for finding a new partner and saw the pipeline operational as early as 2012. The delay sparked sharp criticism by Hungary, whose prime minister told the International Herald Tribune newspaper that the pipeline was taking too long to be planned and was lacking a reliable timetable for gas supplies. The Nabucco pipeline is seen as key to Europe's efforts to reduce its reliance on Russian energy, shipping the gas via Turkey, Bulgaria, Romania and Austria to western Europe, said Reuters.
Source: Dnevnik (14.03.2007)

Bulgargaz threatened the heat supply companies again. “As for now, we do not intend to stop the gas supply to the heat supply companies. However, Heat Supply-Sofia may force us to do so in case thye company keeps on accumulating huge debts after the end of the heating season”, said the procurator of Bulgargaz Georgi Gogov. Until yersterday the Sofia heta supply company had a debt of BGN 148 mln. He added that before stopping the supply, Bulgargaz will seek help from the principal of the company. Among the big debtors to Bulgargaz are the heat supply companies in Shoumen, Varna, Vratsa, Bourgas, Pleven and Plovdiv. Their debts are already reduced and none of them exceeds BGN 10 mln.
Source: Sega (14.03.2007)

Bulgargas posted BGN 143 million pre-tax profit for 2006, up by BGN 17 million compared to 2005. Bulgargas has contributed BGN 233 million to the state budget for 2006, under the form of taxes, non-tax contributions and dividend, Kiril Gegov, CEO of the company said. Bulgargas raked in BGN 1.204 billion revenue for 2006, an increase of BGN 300 million compared to the year-ago period. Gas prices rose by 24% on an average in 2006, according to the company. Bulgargas sold a total of 3.327 billion cu. m of gas in Bulgaria in 2006, up by 3.7% year on year. Companies operating in the energy and chemical sectors are the largest gas consumers in the country. Bulgargas also transited 15 billion cu. m of Russian gas to neighbouring countries in 2006, down by 1.8% compared to 2005. The volumes of natural gas transited to the Balkan countries have risen by 15% in 2007, compared to the period January-February 2006. Domestic consumption, however, has dropped by 10% in 2007 due to the smaller consumption of heating utilities prompted by the mild winter.
Source: Pari (15.03.2007)

Leading Russian gas company Gazprom may transport natural gas to western Europe through the planned Nabucco pipeline which will connect Europe with the Caspian Sea but will not take part in the financing of the project, OMV board member Werner Auli told Bloomberg news agency on March 15, 2007. The 3,300 km long pipeline is to start transporting up to 30 bln cu m gas from the Caspian Sea through Austria to southern and central Europe from 2011. The cooperation project of Austria, Turkey, Hungary, Bulgaria and Romania will cost roughly EUR 4.6 bln. Russia and especially Gazprom were so far considered competition for the Nabucco project. In June 2006 Gazprom and Hungarian sector group MOL agreed on an extension of the existing EUR 5.0 bln Blue Stream pipeline, a cooperation project between Gazprom and Italian ENI, connecting Russia with Turkey via the Black Sea. The extension project called South European Gas Pipeline (SEGP) is an alternative to Nabucco and should transport natural gas over southeastern Europe to Italy and the rest of the continent. Auli underlined that Blue Stream was not a rival project as regards Nabucco as Europe's gas consumption was constantly increasing. It was unlikely that MOL had abandoned Nabucco in favour of Blue Stream, as it was much more reasonable for the company to build as many pipelines as it could, Auli said. The Nabucco consortium is still seeking further financially strong Western European partners for the project in order to secure the assimilation of the guaranteed natural gas volumes. Latest reports suggested that Gaz de France may join in. Gazprom, however, was not in the spectrum of interest, Auli said.
Source: Dnevnik (19.03.2007)

The local companies licensed to distribute natural gas to household and industrial customers have notified the Bulgarian power regulator they plant to collectively invest BGN 107 mln in gas main this year. Citigas, a subsidiary of Italy's Gruppo Societa Gas Rimini, leads the investment spending plans with BGN 49.6 mln. The company is licensed to deploy a gas network in the Trakia region. The Italian-owned company plans to install 1,797 km of gas mains in the first 10 years of its permit lifespan. Some 170-200 km of gas mains will be laid in Plovdiv in 2007 alone. Citigas is aiming for 25,000 customers in two years' time. The regional subsidiaries of gas distributor Overgas Inc. plan to invest BGN 31.6 mln in new infrastructure this year. The consortium between Acegas and Costruzioni Dondi, licensed for the Western gas distribution region, has budgeted BGN 13.2 mln. The smallest budget for new infrastructure was reported by the Black Sea Technology Company, owned by Italy's AMGA Azienda Multiservizi S.p.A. The company owns the gas distribution permits for the Mizia and Dobrudja regions.
Source: Dnevnik (20.03.2007)

Bulgargaz demanded the State Commission for Energy and Water Regulation to decrease by half a percent the price of the natural gas as of April 1. After this change the heat and hot water price may fall s of July 1, said the chair of the regulatory body Mr. Konstantin Shushulov to journalists. If the heat power price falls from July 1, we will search a way to keep it to this level for the entire oncoming heating season, Mr. Shushulov said. According to him this is possible if there is no sharp increase in the price of the natural gas by the end of the year. The regulatory expects the heat-supply companies to declare by April 1 eventual changes in the hear power price.
Source: Darik Radio (21.03.2007)

The costs of central heating and hot water will go down from July 1, 2007, announced sources from the Bulgarian State Energy Regulatory Committee (SERC). The reason for that is expected decrease by 0.5% of the price of natural gas from April, 1. As it is known, gas is the main fuel of the central heating ventures. "We will decrease the tariffs in order to make the heads of the companies save resources. We hope that they will start managing their companies better," said Konstantin Shushulov, head of SERC.
Source: Standart (21.03.2007)

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

Russian pipeline monopoly Transneft will be in charge of pumping oil through the Burgas-Alexandroupolis pipeline, signing up oil producers and running the controller service, says the agreement on the construction of the facility signed last week by Greece, Russia and Bulgaria. The text of the document has been posted on the website of the Bulgarian regional development ministry. The Bulgarian government is expected to approve the agreement next week before it is submitted for parliamentary ratification together with the Burgas-Vlore pipeline convention inked by Sofia, Tirana and Skopje. Transneft will draft the timetables for the oil transmissions and the unloading of the tankers. Bulgarian regional development minister Asen Gagauzov has been adamant that Transneft will act as co-ordinator and that Bulgaria's Bulgargaz and Greece's Hellenic Petroleum will operate the sections of the pipeline on their respective territory. The project will be exempt from any adjustments to fees, customs duties and taxes enforced after the agreement takes effect. Ditto for the project contractors from the start of construction until the project breaks even. The trans-Balkan pipeline that will pump cheap crude to the Mediterranean and consolidate Russia's influence in the European energy market. Once launched in 2009, the EUR 950 mln link will run 279 km from the Bulgarian Black sea port of Burgas to the north Aegean port of Alexandroupolis. It will pump 700,000 barrels per day, or 35 mln tons of crude a year, with potential to rise to 50 mln per year.
Source: Dnevnik (23.03.2007)

Bulgargas Holding CEO Kiril Gegov has tendered surprisingly his resignation, which was accepted by the board of directors, the company said. Gegov, who served as CEO of Bulgargas for nearly 10 years, will remain member of the board of directors of the company. Executive director Lyubomir Denchev will succeeded Gegov as CEO of Bulgargas. The longstanding work at the company and the successfully achieved targets are among the motives for Gegov's resignation, which comes shortly after Bulgargas was restructured into a holding company. The restructured company is in charge of the natural gas supplies and trade and the Nabucco gas pipeline project. The promotion of Lyubomir Denchev, who represents the company in the Bourgas-Alexandroupolis oil pipeline project, comes at a time when the works on the project started picking up. Bulgargas strengthened its positions in the project after private company Frontier pulled out of the project.
Source: Pari (28.03.2007)

The board of state-owned gas distributor Bulgargaz Mon relieved chief executive director Kiril Gegov at his own request. Gegov, who will remain on the board of directors, quits the post after a 10-year stint and will be replaced by his deputy Lyubomir Denchev. The board has revised the articles of association of the company to put in charge an executive director instead of the current power-share between a chief and an executive director.
Source: Dnevnik (28.03.2007)

Kazakhstan officially confirmed its interest in share participation in the Bourgas-Alexandroupolis oil pipeline. The Minister of Energy and Mineral Resources Baktykozha Izmukhambetov who visited the Azerbaijani capital Baku, said that Kazakhstan wanted to buy from Bulgaria and Greece a part of the pipeline, where 51% are held by Russia, the Russian informational agency RusEnergy released Wednesday. The Minister also said that Kazakhstan was interested in project. The preliminary agreement is that Kazakhstan will participate in the project through the 49 percent share of Greece and Bulgaria, he said. A Russian consortium of the Transneft, Rosneft and Gazprom energy companies participate in the project now holding 51 percent, and Bulgaria and Greece hold equal shares of 24,5%.
Source: BTA (05.04.2007)

Gazprom CEO pays surprise visit to Sofia The unexpected trip to Sofia undertaken by Gazprom CEO Alexei Miller suggests that Moscow may be having some concerns about likely obstacles to the realisation of the Burgas-Alexandroupolis oil pipeline project. At a meeting with the Bulgarian prime minister and economy minister, Miller reportedly inquired about possible procedural glitches that the project could be facing, Dnevnik learned from a source on condition of anonymity. Last month, Bulgaria, Russia and Greece signed an accord on the creation of the 279 km pipeline which will run from the Bulgarian Black Sea port of Burgas to the north Aegean port of Alexandroupolis, bypassing the congested Turkish Bosporus Straits. The launch of the project has stirred concerns about the environmental impact of the unloading of oil tankers in the Burgas bay before the oil is transported to Greece. The project does not yet have an environment impact assessment because the company that will invest in the facility is yet to be set up. Russian oil producers Rosneft and Gazprom Neft and pipeline monopoly Transneft will share 51 per cent of the Burgas-Alexandroupolis pipeline while Greece and Bulgaria will share the remaining 49 per cent. Bulgarian deputy regional development minister Kalin Rogachev told Dnevnik in a recent interview that the project may not be implemented if the environmental hazard is too great. The source also told Dnevnik Miller insisted before the prime minister that Bulgaria speed the realisation of the project. The accord on the oil pipeline is expected to be moved for ratification by the Bulgarian parliament by the end of April.
Source: Dnevnik (06.04.2007)

Bulgaria's power regulator Tuesday granted a 35-year gas distribution permit for the territory of ski resort Bansko to local gas supplier Overgas. For the purposes of the project, Overgas will have to invest BGN 7.5 mln in a 35 km gas main linking Bansko with Simitli. In partnership with the economy ministry, Overgas will apply for project financing from the regional development funds of the EU, said Overgas CEO Sasho Donchev. The construction of the gas distribution network will begin in 2008 when 180 and 49 industrial customers are expected to be signed up. A total of 53 km of gas mains will be laid through 2027 at a cost of BGN 20 mln. The potential customer base is seen at 3,000. A possible challenge looming for the project could be the routing through the northern fringes of the Pirin nature reserve. The other bidder for the Bansko gas distribution permit was Pirin Power, co-owned by local power engineering company Enemona.
Source: Dnevnik (25.04.2007)

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

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

London-based banks willing to acquire Kremikovtzi’s liabilities Two London-based bans are willing to acquire Kremikovtzi’s and Bulgargas’s liabilities. The total liabilities are BGN 24 mln. Alexander Tomov announced about British interest in Kremikovtzi’s policy. The two banks are willing to become shareholders in the company by acquiring its liabilities. Tomov refused to point their names. Kremikovtzi’s old liabilities total BGN 304 mln. Despite all these debts, the average monthly salary at the metallurgical site is BGN 903. As Tomov says, there are some 54 000 people who are somehow bounded to the company. The plant is currently considering the idea of installing a new electric furnace for steel processing.
Source: Pari (04.05.2007)

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

Dalkia Bulgaria, the local unit of French utility Dalkia International, said it is interested in acquiring a 20 per cent stake in district heating company Toplofikacia-Sofia in a debt-for-equity scheme. Despite the lack of an official response to the letter the company said to this effect to the Bulgarian energy ministry in late 2006, Dalkia Bulgaria said the offer still stands. The French company is ready to settle a portion of Toplofikacia's debts that corresponds to a 20 per cent equity stake. The heating utility, co-owned by the government and the Sofia municipality (58 per cent), is some BGN 300 mln in the red. Czech utility company CEZ has also indicated it is interested in a debt-for-equity swap with Toplofikacia-Sofia. The government and the Sofia municipality have clashing ideas for the future development of the heating company which makes unlikely the privatisation of the company over the near-term. The Sofia municipality insists that the heating utility should be dismembered and then sold off in pieces while the energy ministry is pushing for the privatisation of 100 per cent of the capital in one go. Dalkia Bulgaria said it will definitely join a privatisation procedure for Toplofikacia-Sofia if such is launched. The French company, however, is not interested in a piecemeal privatisation and wants 100 per cent ownership. Dalkia said it has slated BGN 20 mln for investment over the next 5 years in the Varna district heating company which it acquired for EUR 6.8 mln in early 2007. The owner will invest in the rehabilitation of the transmission infrastructure and in the reduction of losses in transmission from the current level of 30-35 per cent to around 11 per cent. The company's developing a project for the adoption of a technology for biomass energy production at the Varna utility. The cost of the project is included in the 5-year investment program.
Source: Dnevnik (14.05.2007)

Sofia and Moscow to ink agreement on new gas pipeline Two months after endorsing the project for the Burgas-Alexandroupolis oil pipeline, Bulgaria and Russia are working on a new intergovernmental energy agreement, Dnevnik was told by a source from the Bulgarian energy ministry. The new agreement concerns the project for the transportation of Russian natural gas via Bulgaria to the rest of Europe. The planned trans-Black Sea gas pipeline will most likely connect Russian port Novorosiisk with Bulgarian port Burgas. Once it reaches Bulgarian territory, the pipe could have up to 5 onward routes to destinations in Central and Southeastern Europe, in particular Greece and Italy. There is also an option that the new pipe could replicate the route of the rival Blue Stream project and connect Turkey with Bulgaria. State-owned gas suppliers Gazprom and Bulgargaz are expected to give more details about the project in June. The implementation of the project is expected to take Sofia's geostrategic position to another level. There are still no official estimates for the likely cost of the new gas pipeline. The Blue Stream project cost USD 3.2 bln with more than half of the funds spent on the undersea section of the facility which is three times shorter than the proposed Novorosiisk-Burgas route. At the moment, Bulgargaz transits 15 bln cu m of Russian natural gas annually and has the infrastructure capacity to increase the volume to 17 bln cu m per year. In related news, Svetoslav Ivanov, deputy executive director of local gas distributor Overgas, said the new government energy strategy sets a goal of some 11 per cent of Bulgarian households switching to gas by 2011 with that share reaching 30 per cent by 2020. Only 3 per cent of Bulgarian households have already made the switch versus over 50 per cent in the rest of the EU, said Ivanov. Some 4.5 mln Bulgarians, out of a population total of 8 mln, live in municipalities with no gas distribution infrastructure.
Source: Dnevnik (23.05.2007)

The receivers of Razgrad-based glassworks Diamant said they expect to clinch a BGN 13.8 mln deal by the end of the week for the sale of the assets of the bankrupt company to Via Properties. The plant has been inoperational for over a decade. Most of the production equipment has been canibalised. Via Properties, a company active in construction, tourism and leasing, said it will invest EUR 50 mln within 2 years to reboot glass production. The product range will include flat, patterned and tableware glass. The insolvency proceedings against Diamant were initiated in January 2002 at the request of its main creditor, state-owned gas distributor Bulgargaz. The glass factory owed various creditors BGN 12 mln, including unpaid gas bills for BGN 9 mln.
Source: Dnevnik (29.05.2007)

Bulgaria's MPs gave a "green light" to the tripartite project for the construction of Bourgas - Alexandroupolis oil pipeline. Yesterday, the Bulgarian government ratified the cross-governmental agreement between Bulgaria, Russia and Greece. The majority of MPs (109) gave their vote for the construction of the oil pipeline; 19 MPs were against and 3 MPs abstained from voting. According to a prognosis made by Minister of Industry and Energy of the Russian Federation, Viktor Khristenko, a meeting of the management of the international construction company, commissioned to implement the project is due to take place by the end of May so that a start is given to the necessary legal proceedings. The cross-border agreement has already been ratified by Moscow and Athens. Bulgaria and Greece hold each 24,5 percent of the shares, whereas Moscow is the shareholder with 51 percent of the shares.
Source: Standart (31.05.2007)

Bulgarian state-owned gas distributor Bulgargaz will participate in the exploration of natural gas deposit concessions abroad, says the development strategy of the company which was presented to the parliamentary energy policy committee on Wed. The company said no talks are yet underway to join the exploration of gas deposits. The management said it has signed strategic partnership agreements with Italy's Enel, Gaz de France and OMV. Bulgargaz is in talks with Melrose to use as a repository the Galata gas deposit the British company is mining at the moment.
Source: Dnevnik (31.05.2007)

Kazakhstan will start negotiations with Bulgaria and Greece for acquiring shares from the Bourgas-Alexandroupolis oil pipeline, Nurlan Nogaev, Director of the Oil Industries Department to the Ministry of Energy and Mineral Resources of Kazakhstan, said for Interfax-Kazakhstan news agency. In this project Bulgaria and Greece hold 24,5% each and Russia holds the rest 51%.
Source: Standart (01.06.2007)

Gazprom will study a Greek proposal to build a gas pipeline alongside the Burgas-Alexandroupolis oil pipeline, the company was quote as saying by Russian online news outlet Moscow Times. That pipeline would eye the same southeast European markets as Nabucco, the project to diversify European supplies by delivering gas from Central Asia. Greek President Karolos Papoulias made the new pipeline proposal after talks with President Vladimir Putin. The pipeline could be connected at the Bulgarian port of Burgas with a link from the Blue Stream pipeline which takes gas from Russia under the Black Sea to Turkey. Gazprom has long been looking to use Blue Stream as a link to increase supplies to southeastern Europe and considered Greece as a possible transit country, said the publication. Greece had previously not shown interest in the project. Blue Stream is able to carry 16 bln cu m of gas every year, but shipped just 5.1 bcm in 2005. Gazprom has an edge over Nabucco thanks to its proven resources and possible lower costs due to laying the gas pipeline next to the oil pipeline, Vladimir Vedeneyev, an analyst at the Bank of Moscow, told the newspaper.
Source: Dnevnik (05.06.2007)

Bulgaria's power regulator will issue permits for gas distribution and for power transmission network management on a non-competitive basis if the permit area falls outside the eight regional gas distribution districts into which the country has been zoned. The no-bid award will be legislated with draft changes to the ordinance on power industry licensing which will be tabled for a public discussion on Friday. However, in case the permit is contested by more than one candidate, there will be a competition. The changes will provide for a transparent licensing procedure with clear requirements for the paperwork expected from the applicants for no-bid permits. The proposed changes will also allow the municipalities to ask the power regulator to include them in gas distribution regions where the gas distribution permit has been granted. The power regulator has so far granted gas distribution permits for the Mizia region, centered in Pleven, the West region, centered in Blagoevgrad, the Trakia region, centered in Plovdiv and the Dobrudja region, centered in Plovdiv.
Source: Dnevnik (08.06.2007)

Kazakhstan to start negotiations for the pipeline in June Kazakhstan will start negotiations to acquire 49 per cent of the shares that Sofia and Athens have in the oil pipeline that will run between the Bulgarian Black Sea port of Burgas and the Greek Aegean Sea port of Alexandroupolis, report Russian media. Talks are underway to sell the shares controlled by Bulgaria and Greece to oil corporations that will ensure the oil deliveries. This option is provided for in the trilateral agreement for the construction of the pipeline signed by Russia, Greece and Bulgaria.. Sources close to the project said Moscow would like to see a prompt sale of the shares and is reportedly backing Kazakhstan entry in the project. Russia has reportedly insisted that Sofia respond to the invitation for the negotiations within the next 3 weeks. Bulgarian regional development minister Asen Gagauzov confirmed for Dnevnik that Kazakhstan is keen to join the project but said that such negotiations could be launched after the incorporation of the company that will design and build the pipeline. Simeon Veinstoc, president of Russia's Transneft which has been tapped to operate the oil pipeline, told news agency Interfax that U.S. company Chevron and Russian-British company TNK-BP will likely negotiate for the Bulgaria and Greek stakes in the project. Transneft has also asked the Bulgarian side to speed up work on the pipeline project. Veinstock was quoted by the Russian media as criticising Sofia for failing to name the Bulgarian companies that will be involved in the undertaking.
Source: Dnevnik (11.06.2007)

Bulgaria and Greece have been subjected to pressure on the part of Russia to sell their shares in the Burgas-Alexandroupolis oil pipeline, representatives of the companies participants in the project said after the meetings conducted in Moscow, as quoted by the Mediapool news agency. The participants in the talks from Russia, Bulgaria and Greece discussed the structuring of the International Designing Company, which would finance and carry out the construction of the pipeline. Russian energy companies Transneft, Rosneft and Gazpromneft hold a fifty-one percent stake in the trans-sea pipeline, whereas the Bulgarian companies Bulgargaz and Technoexportstroy hold a 24.5 percent stake, and the stake of the Greek companies Hellenic Petroleum and Prometheus is also 24.5 percent. At the talks Bulgaria was represented by Deputy Minister of Regional Development and Public Works Kalin Rogachev and Emil Kotsev, CEO of Technoexportstroy. A participant in the meeting told The Standart that pressure was exerted on Bulgaria and Russia to sell their stakes. It was explained to them that such a move was necessary so that Kazakhstan could be included in the project, but experts say it seems more likely that the Russian companies want just to lay their hands on a bigger share in the project. Kazakhstan has already started talks with Greece on a possible acquisition of its share, it transpired at the economic forum in Saint Petersburg. The news was spread by Semyon Vainshtok, CEO of the state-owned oil pipeline monopoly Transneft. The US giant Chevron also shows appetite in the project. Kazakhstan has reportedly given Bulgaria's Minister of Regional Development and Public Works Assen Gagauzov a two-week term to decide on possible negotiations about the sale of Sofia's share in the project. "We are not going to sell anything until we see oil flowing in the pipe," Emil Kotsev said. "Bulgaria should step up the project's implementation," Semyon Vainshtok said. He added that a few days ago he sent a letter to PM Sergey Stanishev, in which he asks him to take the necessary measures to secure the speedy implementation of the project on the part of Bulgaria. "The Greeks have already come up with a definite stand on the issue, and Bulgaria is still shilly-shallying about it," Vainshtok said also. Russia has already come up with proposals for the registration of the international company, which will manage the pipeline and the draft sheet of the company's regulations. "The disagreements arose from Bulgaria's refusal to accept the decisions taken on one of the discussed issues," Vainshtok said further.
Source: Standart (11.06.2007)

The Bulgarian and Greek companies that will participate in the construction of the Burgas-Alexandroupolis oil pipeline have rejected as unrealistically short the deadlines set in the project's implementation timetable as suggested by Moscow. Representatives of the corporations will meet July 9 in Sofia to discuss the draft statutes of the company that will design and build the crude oil pipeline. Under the agreement signed by Bulgaria, Greece and Russia, the international project company should be incorporated by the end of 2007. Russian oil producers Rosneft and Gazprom Neft and crude oil pipeline monopoly Transneft have 51 per cent in the project. Greece is represented by Hellenic Petroleum/Thraki with the government retaining a 1 per cent stake. Sofia has tapped Bulgargaz and Technoexportstroy. At a meeting in Moscow a week ago, the Russian side raised the issue for the sale of the Bulgarian and Greek stake in the project. Kazakhstan has already said it is interested in buying the two states out of the project. Although the proposal was backed with intense pressure from Moscow, Sofia said no equity will change hands before the international project company is incorporated. The trilateral agreement requires the consent of all three states for a new player to join the project. Alternatively, Kazakhstan could also acquire a portion of the Russian share. Russia has reportedly insisted that Sofia say within the next 3 weeks whether or not it is willing to cash out of the project. On Sunday, Transneft asked the Bulgarian side to speed up work on the pipeline project.
Source: Dnevnik (12.06.2007)

Austrian utility company EVN plans to invest around BGN 7 mln in the Plovdiv district heating company through 2009, it was announced after the signing of the privatisation contract on Thursday. The investment resource will be spent primarily on the modernisation of the heating infrastructure. The new owner has also budgeted EUR 32 mln for the construction of a co-generation facility. EVN is paying EUR 32.1 mln for 100 per cent control of the heating utility. The new owner will be barred from divesting any equity or lowering his equity holdings below 51 per cent over the next three years. EVN also undertakes to align the operation of the utility with the EU requirements towards large combustion installations. The Austrian company has also agreed to settle an outstanding debt of BGN 12 mln owed to gas supplier Bulgargaz. In Bulgaria, EVN also owns the regional power distribution companies in Stara Zagora and Plovdiv. The Austrian company Thursday declined to comment on the progress of the sale of the Sunny Beach resort power distributor which it is poised to take over.
Source: Dnevnik (13.07.2007)

Austria's EVN signed a contract for privatisation of 100% of the heating utility in Plovdiv, Toplofikatsia. The company won the tender with a EUR 32.100 million bid. The contract provides for stiff forfeits in case of default, so it protects the public interest, Privatisation Agency CEO Todor Nikolov said. EVN undertakes to repay Toplofikatsia's BGN 12 million debt to Bulgargaz. It has to invest BGN 7 million in modernisation of the company and BGN 32 million in the installation of co-generation facilities for production of heating and electrical power. The company has to invest BGN 2.127 million in 2007 and another BGN 3.700 million in 2008. The new owner has no right to transfer shares or reduce its stake to below 51% for a period of three years. The company has to keep labour expenses unchanged for the same period.
Source: Pari (13.07.2007)

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

The shareholders of the international company specially incorporated to build the Nabucco gas pipeline have decided to start negotiations with Germany utility RWE on joining the project, said a sources from the Bulgarian side on condition of anonymity. Nabucco Gas Pipeline International was set up by the five companies behind the project -- Bulgaria's Bulgargaz, Austria's OMV , Hungary's MOL, Turkey's Botas and Romania's Transgaz. Bulgargaz confirmed the launch of the RWE talks. The new shareholder will get a share even with that of the others, said the source. The consortium has been seeking a sixth party to join the project and RWE was the runner-up among the candidates. The German company became a come-from-behind contender after the talks with first-choice Gaz de France stalled when Ankara refused to back the entry of the French company. The EUR 4.6 bln 3,300 km pipeline will bring Iranian and Caspian gas to big consuming countries in Europe. The 2,000 km first phase of the pipeline between Ankara in Turkey and Baumgarten in Austria will offer 8 bcm from 2012 The European Union sees Nabucco as a key supply route which should reduce the bloc's reliance on Russian gas after winter supply cuts to Europe.
Source: Dnevnik (19.07.2007)

French company Dalkia, which recently completed the take-over of the Varna district heating company, is in talks with local businessman Hristo Kovachki to buy from him the district heating companies in Burgas, Vratsa, Pleven and Sliven, Dnevnik learned from a source close to the negotiations. Dalkia Bulgaria declined to comment. The Kovachki office failed to respond to questions about the negotiations before Dnevnik went to press. Czech utility company CEZ is also interested in the Kovachki companies. CEZ Bulgaria CEO Martin Roman recently told Dnevnik that talks have been held on the acquisition of some assets controlled by Kovachki. The Vratsa district heating company went private through the local stock exchange. It was acquired by the Kamibo company for BGN 790,000. Kovachki was named as a Kamibo consultant. No data has been supplied to the power regulator on the investment that has been ploughed in the three utilities which collectively service 100,000 households. A successful deal would strengthen Dalkia's positions on the Bulgaria power market, putting it in the same bracket as Austria's EVN which recently bought the Plovdiv heating company. Dalkia is also eyeing a 20 per cent stake in the ailing Sofia district heating company under a proposed debt-for-equity scheme. The only state-owned district heating companies remaining are those in Sofia, Shumen and Pernik.
Source: Dnevnik (20.07.2007)

Bulgarian state-run Bulgargaz Holding and Austrian oil and gas corporation OMV have signed a memorandum to conduct joint Black Sea shelf drilling and co-operate for the expansion of the local gas market. The experts of the two companies are drafting an agreement specifying the projects that will be implemented jointly. The participation of the Bulgarian company in the OMV gas licences will also require financing, an issue that will be further discussed by the two partners. The OMV partnership is part of the strategy for Bulgargaz's development through 2009, said executive director Lyubomir Denchev. Bulgargaz is considering a joint venture with OMV or even joining under a management contract the Austrian company's Avanti chain of service stations which will sell, diesel fuel, gasoline A-95, propane-butane and methane, said Denchev. That would allow the holding company to set foot on the local methane market. Bulgargaz plans to build methane filling stations or a virtual pipeline system, supplying methane from compressor stations to clients within a 80 km radius. Bulgargaz is also in partnership talks with Melrose Resources Ltd. Which is licensed to drill for gas and oil in five Black Sea shelf blocks. Melrose's ongoing gas development is in the Galata concession area which should be depleted in 2008. The gas output is sold to Bulgargaz. The holding company plans to repurpose the depleted deposit into a gas repository. Bulgargaz is reviewing its long-term co-operation deals with Germany's Ruhrgas and Gaz de France. The review should be completed by the end of July. The agreements are expected to be updated with the inclusion of commitments for the implementation of concrete projects. At the moment, the partnership under the agreements is limited only to staff training initiatives, said Denchev.
Source: Dnevnik (23.07.2007)

The company that will design the planned Nabucco gas pipeline will be selected by the end of 2007, news agency Rompres quoted sources from the Romanian economy ministry as saying. The head design firm should complete its project task by 2009 when the construction of the facility is due to kick off. The pipeline should be operational by 2012. Rompres said that each of the participant countries will pick a local company to assist the work of the designer. The five companies behind the project -- Bulgaria's Bulgargaz, Austria's OMV , Hungary's MOL , Turkey's Botas and Romania's Transgaz, are currently in talks with Germany utility RWE on joining the project. The consortium has been seeking a sixth party to join the project and RWE was the runner-up among the candidates. The talks with first-choice contender Gaz de France have not been broken off, reported news agency Reuters. The negotiations had stalled when Ankara refused to back the entry of the French company. The EUR 4.6 bln 3,300 km pipeline will bring Iranian and Caspian gas to big consuming countries in Europe. The 2,000 km first phase of the pipeline between Ankara in Turkey and Baumgarten in Austria will offer 8 bcm from 2012 The European Union sees Nabucco as a key supply route which should reduce the bloc's reliance on Russian gas after winter supply cuts to Europe.
Source: Dnevnik (25.07.2007)

The city of Sofia has chosen a public auction format for the divestiture of its 56% stake in the Municipal Insurance Company (MIC). The municipal council will set in September the minimum sale price for the stake which has been valued by an independent appraiser at 6.3 mln levs. The sale procedure is expected to be concluded in October ahead of the local elections. The municipal stake is made of the 9.57% held by the city itself, the 46.41% controlled by municipal company Sofiiski Imoti and the 9.57% of municipal company Parkings and Garages. The municipal stake will not be broken up for the purposes of the privatisation procedure. Last year, local businessman Hristo Kovachki accumulated a 20% stake in MIC after several equity transactions. Another local insurer, Lev Ins, had also notified to the municipality its interest in the company. Insurer Armeec has reportedly also inquired about the possible sell-off. Potential buyers would pursue the insurer, one of the nation's smallest with a 2006 premium income of 7.4 mln levs, mainly for the sake of its licence and steady position.
Source: Dnevnik (03.08.2007)

Customers of Heat Supply-Sofia JSC currently owe BGN 190 mln to the company and the collection rate is 38 percent, said CEO Petko Milevski. Meanwhile the heat supply company owes BGN 150 mln to Bulgargaz for delivered fuel. The company commented that the low collection rate is because the equalizing bills have not yet been received. According to Milevski most of those bills will be received in September.
Source: BTA (03.08.2007)

Alma Tour, one of Bulgaria’s biggest tour operators, has bought the Tamplier holiday homes complex in local ski resort Bansko. The deal was confirmed by Alma Tour executive director Lyubomir Pankovski and former Tamplier owner Ilko Yotsev. The four-star Tamplier was among the first condo complexes to be built in Bansko. The BGN 12 mln facility offers 50 apartments on four floors. The list of amenities of the 12,000 sq m complex includes swimming pool, gym, spa center, restaurant, bar and underground parking. The buyer said the complex will continue to operate as a hotel with further apartments to be added. The tour operator has already purchased 0.5 ha of land for the expansion of the complex. An aquapark will also be built. Alma Tour also owns the Atlas hotel in local sea resort Golden Sands. The company invested BGN 12 mln in the 580-room hotel which opened in 2003.
Source: Dnevnik (07.08.2007)

Blast in Bulgarian Pipeline Cuts Supply An explosion ripped through a pipeline in Bulgaria, interrupting Russian gas supplies to Greece on Monday, authorities said. No injuries were reported, according to AP. Police officials said the explosion occurred near the town of Blagoevgrad, 50 miles south of Sofia, and damaged about 30 feet of the pipeline running beneath agricultural land. The most likely cause of the blast was a gas leak, said Angel Semerdjiev, general manager of Bulgartransgas, an affiliate of state-owned gas company Bulgargaz. "There is no other visible cause for the incident." Energy Ministry spokeswoman Veselina Velcheva said authorities were investigating the incident. A recent inspection had shown "that everything was in good order," she said. A police spokesman said safety systems in the pipeline automatically shut off the flow of gas and the situation was under control. The area was cordoned off and measures taken to prevent any risk from the gas to people living nearby. Repairs were being carried out on the damaged part of the pipeline, and Semerdjiev said the flow of gas should be back to normal within 48 hours. Velcheva said earlier that the work could take up to 78 hours. Bulgargaz transports gas from Russia's Gazprom through Bulgaria to Greece, Macedonia and Turkey.
Source: Other (07.08.2007)

"Bulgarian tankers will supply oil for the Bulgarian sector of Bourgas-Alexandroupolis oil pipeline. At least two Bulgarian vessels will be shipping crude oil to Novorossiisk. The Bulgarian tankers will compete with Greek and Russian vessels in the tenders for crude oil shipping," said Assen Gagauzov, Bulgaria's Minister of Regional Development and Public Works. Yesterday, Minister Gagauzov and Interior Minister Rumen Petkov had talks with Bourgas Deputy Mayor Venelin Todorov and some municipal councilors. The ministers promised that part of the collected crude oil transit fees would be granted to Bourgas Municipality to help the city solve some of its environmental and infrastructure problems. The expected revenues to the State Fisc from Bourgas-Alexandroupolis project vary between thirty-five and fifty million US dollars a year and about fifteen million of this money will be granted to Bourgas Municipality. Minister Gagauzov also said that only the latest and the safest technologies would be used in the construction of the necessary facilities.
Source: Standart (08.08.2007)

Bulgarian state-run Bulgargaz Holding gearing to go public Bulgarian state-owned Bulgargaz Holding is preparing to list on the local and international stock markets. The holding was incorporated in late 2006 to comply with EU requirements for the unbundling of natural gas trade and transmission operations. It comprises subsidiaries Bulgartransgaz, Bulgargaz and Bulgartel. The goal is to float over the next 2-3 years a 20-30% stake first on the Bulgarian bourse, said Bulgargaz Holding chief executive director Lyubomir Denchev. The package will then be increased and listed on the London Stock Exchange, said the company official. Unless Bulgargaz Holding, with a capital of 500 mln euro, goes that route, it would not achieve parity in terms of market capitalisation with its European counterparts that are in the 2 bln to 10 bln euro range, said Denchev. The Bulgargaz management plans to meet with representatives of the Bulgarian Stock Exchange soon to discuss the listing procedure. In view of Bulgaria's EU membership, an LSE listing could happen within six months, said Denchev. The company is currently included in the list of enterprises with no privatisation option. Unless the holding goes public, there will be a push to strike it from the no-privatisation roster, said Denchev. Any Bulgargaz listings will be preceded by the adoption of a development strategy through 2011. The holding intends to hire a consultant to advise on the financial packaging of the company’s participation in projects like the Nabucco, South Stream and Burgas-Alexandroupolis pipelines. On the homefront, the company plans to grab a share of the gas business in areas left off the energy ministry-approved map of the local gas distribution regions. To this end, talks have been scheduled with the local authorities in Smolian, Kardjali, Vidin and Srednogorie. Bulgargaz Holding and Austrian oil and gas corporation OMV recently signed a memorandum to conduct joint Black Sea shelf drilling and co-operate for the expansion of the local gas market. The holding company also has co-operation deals with Italy's Enel and Gaz de France and plans to soon meet with representatives of Germany's Ruhrgas.
Source: Dnevnik (17.08.2007)

Struggling district heating company Toplofikacia Sofia has asked state-owned gas supplier Bulgargaz to agree to the rescheduling of some 150 mln levs in outstanding gas bills, said Bulgargaz executive director Dimitar Gogov. The gas distributor said it is amenable to a debt-for-equity payment scheme. Bulgargaz is owed 203 mln levs in unpaid gas bills by the domestic heating utilities carried over from the '06-'07 heating season.
Source: Dnevnik (20.08.2007)

It seems Russia has again found a way to twist arms of Bulgaria and Greece in the Burgas-Alexandroupolis project. Moscow is now trying to compel the two countries to sell their shares in the project - 24.5 percent each. Surprisingly, during the meeting in Athens the Russian experts made a proposal off the agenda, under which Bulgaria and Greece are to take the financial responsibility, if they fail to supply their quotas of crude oil for the pipeline. A meeting of the companies - partners in the International Project Company has been going on in Greece since Monday. Bulgargaz CEO Angel Semerdzhiev and Emil Kotsev, CEO of Technoexportstroy are also participants in the meeting. The clause proposed by Russia practically compels Bulgaria and Greece to sell their shares, because it is virtually impossible for them to provide the required quantity of crude oil for the pipeline, the capacity of which amounts to 35 million tons of crude oil per year on the average, or 50 million tons at the maximum. This means that Bulgaria, according to our share, is to provide eight and a half million tons of crude oil a year. The candidate buyers are Western oil companies and also the Government of Kazakhstan.
Source: Standart (29.08.2007)

A new set of conditions tabled by Moscow have raised question marks over the implementation of the Burgas-Alexandroupolis oil pipeline project and have undermined Bulgaria's possible benefits from the facility. At a meeting in Athens, the Russian side has demanded that its partners in the project, Bulgaria and Greece, provide 49% of the oil that will be pumped. Unless Sofia and Athens comply, they will be facing financial penalties. When the Bulgarian parliament ratified the intergovernmental agreement on the pipeline it was announced that the government will have no financial commitments towards the project. It was claimed that the facility will generate over $35 mln in annual income for Sofia.
Source: Dnevnik (29.08.2007)

Bulgaria attempts to slip away from Russia's energy grasp. Bulgaria's Foreign Minister Ivailo Kalfin has been entrusted with the mission to negotiate gas from Turkmenistan, The Standart learnt. A governmental delegation departs for the Caspian republic today. One of the most important meetings will take place on September 6 in Ashkhabad. Kalfin will hold talks with the President of Turkmenistan Gurbanguly Berdimuhammedow. In case an agreement is reached, the gas will be transported via the Gazprom pipelines and Bulgaria will pay only transit fees, said Deputy Minister of Energy Luchezar Borissov, member of the delegation. According to the gas directive, observed by the countries all over the world, Russia is under an obligation to allow the gas be transported via its pipelines, no matter how unpleasant this may be for the Kremlin.
Source: Standart (03.09.2007)

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

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

The state-owned stake in Heat Supply-Sofia JSC might be sold. Experts from the Ministry of Economy and the minister Petar Dimitrov himself have met representatives of the World Bank and the European Bank for Reconstruction and Development, which are the creditors of the Sofia-based company on the state-guaranteed loans. We have been calculating what is to be lost and what is to be won, if we sell the shares, said sources of ministry. The state holds 42 percent in Bulgarian’s biggest heat supply company.
Source: Standart (11.09.2007)

Sofia has balked at the proposal of natural gas major Gazprom that the Russian state-controlled company is granted a majority stake in the joint venture it will co-create with the local Bulgargaz to install and operate the stretch of the South Stream gas pipeline on Bulgarian territory. The Bulgarian side fears possible Russian ownership claims over the gas mains in case of a majority participation, Dnevnik learned from a government source that asked not to be named. An interdepartmental working group set up by the Bulgarian government is already discussing the parameters of the future bilateral agreement on the South Stream project and on the joint venture that will be incorporated by Gazprom and Bulgargaz after the document is signed. It is expected that the two sides will put pen to paper by the end of 2007.
Source: Dnevnik (11.09.2007)

Fuel prices prod Bulgarian inflation The perfect storm of recent electricity and food price gains and the just announced proposal for a 11% increase in gas tariffs could well send Bulgaria's annual inflation on track to beat all forecasts. Experts quoted by news agency Bloomberg have forecast a 1.4% month-on-month price inflation for August with the year-on-year increase seen at 9.9%. The increase in fruit and vegetable prices and the rising fuel costs have cancelled out the price deflation that is usually recorded in August, Georgi Ganev from the Center for Liberal Strategies told Bloomberg. The upward revision of gas prices requested by Bulgargaz will spike heating tariffs and production costs in the metallurgical, chemical and ceramic industries, among others.
Source: Dnevnik (12.09.2007)

The price of natural gas may go up by 10.78 per cent to slightly over BGN 353,000 per cu. m in the fourth quarter of 2007. The figure would represent an increase of BGN 34.46 compared to the price of natural gas at present, according to the estimates of state-owned gas monopoly Bulgargas, which were tabled for approval by the State Commission for Energy and Water Regulation (SCEWR) on Tuesday.
Source: mediapool.bg (12.09.2007)

Bulgaria Not to Sell Its Share of Bourgas-Alexandroupolis Pipeline Bulgaria has given up the idea of selling its share in the Bourgas-Alexandroupolis oil pipeline, the news was spread by Reuters, as quoting a Bulgarian energy expert. Initially, the Bulgarian Government planned to sell Bulgaria's share of 24,5% to the US oil giant Chevron and Kazakhstan's national oil and gas company Kazmunaigaz, Reuters writes further. A week ago, Bulgaria's Foreign Minister Ivaylo Kalfin paid a visit to Kazakhstan to negotiate the supply of crude oil for the pipeline. If Bulgaria fails to provide crude oil for the pipeline, the country should sell her share at the insistence of Russia, which is a majority shareholder in the project. "The sale of Bulgaria's share is no longer considered a possible option," Bulgargaz CEO Lyubomir Denchev said.
Source: Standart (12.09.2007)

Indian companies are interested in engaging in the Nabucco gas pipeline project via Bulgaria, it emerged at a business forum in Delhi during the state visit of Prime Minister Sergey Stanishev. "Bulgaria would welcome offers by companies that want to take part in Nabucco," Stanishev said. Economy and Energy Minister Petar Dimitrov, who is in the Bulgarian delegation accompanying Stanishev, explained that the delay in the EUR 4.6 B, 3,300 kilometre project was triggered by politics, not business.
Source: Darik Radio (13.09.2007)

Bulgargaz stooped the gas supply to Heat Supply-Pleven SPJSC for nearly three hours. The Pleven-based compny owes more than BGN 14 mln. The unpaid customers’ bills are worth more than BGN 11 mln, said chairman Ivan Getov. In case Pleven citizens pay their bills until September 30, the interest will be remitted. The heat supply this year will be BGN 2 cheaper. The price will be 76.15 BGN/MWh. Getov said that if the company does not manage to pay Bulgargaz in time, it may start the heating later.
Source: Standart (14.09.2007)

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

Bulgaria's power regulator has shaved 5 levs off the gas hike requested by local distributor Bulgargaz. The watchdog is scheduled to review at an open-door meeting today the Bulgargaz proposal. The gas distributor has asked by a 34.46 lev increase to 353.98 levs per 1,000 cu m without taxes while the regulator said it is more amenable to 348.98 levs. The 10.78% upward revision requested by Bulgargaz prompted economists to warn that it could fuel inflation.
Source: Dnevnik (26.09.2007)

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

Bulgargaz, the Bulgarian state-owned gas distributor, said it is considering differentiated tariffs for industrial users tied to the consumption volume of the respective company and the scheduling of the deliveries. The proposal will have to be approved by the regulator. The watchdog is scheduled to take a final decision on a Bulgargaz proposal for a hike in domestic gas prices at a closed-door meeting on Mon. The gas distributor has asked by a 34.46 lev increase to 353.98 levs per 1,000 cu m without taxes while the regulator said it is more amenable to 348.98 levs. The 10.78% upward revision requested by Bulgargaz prompted economists to warn that it could feed inflation.
Source: Standart (27.09.2007)

Bulgaria's transmission company Bulgargaz may sell natural gas at prices lower than the ones set by the State Commission for Energy and Water Regulation (SCEWR). A similar option is possible in case the state decides to give up its dividend from the company, Petar Dimitrov, economy and energy minister, said. Estimates are currently being made, Dimitrov said. The figure at stake is BGN 51.6 million and accounts for almost half of Bulgargaz's net profit for 2006. SCEWR chairman, Konstantin Shushulov, suggested last week that Bulgargaz should give up its guaranteed 3-percent profit. This is another option for the natural gas to be sold at lower prices. Bulgargaz initially asked for an 11-percent increase in the price of natural gas. SCEWR, however, suggested that the price may be hiked by as much as 9% and the final decision will be taken today. This means that Bulgargaz will incur losses over the next three months, estimates of the company show.
Source: Pari (01.10.2007)

Bulgaria's state-owned gas firm Bulgargaz and the Toplofikatsiya heating utility in capital Sofia agreed on Friday to reschedule the payment of the debts owed by the heating firm. Toplofikatsiya owes Bulgargaz BGN 150 M for deliveries of gas, the main source of energy it uses. It will pay back the debt over the next six years. The managing boards of both firms have already approved the deal. Toplofikatsiya was found to be on the verge of bankruptcy last year after an impromptu audit, and its chief executive Valentin Dimitrov was arrested. He has since been indicted on charges of currency fraud and is being investigated for alleged money laundering and embezzlement.
Source: Darik Radio (01.10.2007)

Minister: Bulgaria to Forgo Bulgargaz Dividend to Keep Prices Low Bulgaria's cabinet could forgo its dividend from state-owned gas company Bulgargaz in order to mitigate the gas price hike, economy and energy minister Petar Dimitrov said on Friday. Bulgargaz wants prices to rise by 11% next month, but utility prices regulator DKEVR said earlier this week that it would not authorise a hike of more than 9%. DKEVR is expected to rule on the issue when it next meets on October 1. The economy ministry is currently calculating the impact of the hikes, as well as how forgoing the dividends would impact the gas prices, Dimitrov said. Bulgargaz has also offered to sell gas at lower prices to its biggest customers, like the Kremikovtsi steel mill and the Sofia heating utility Toplofikatsiya.
Source: Darik Radio (01.10.2007)

State-run gas distributor Bulgargaz and beleaguered district heating company Toplofikacia Sofia signed last week an agreement rescheduling the payment of 150 mln levs in unpaid gas bills through 2013. The deal, which will have to be reviewed by the nation's anti-trust authority to make sure it does not constitute unacceptable state aid, was made possible after Toplofikacia Sofia settled a fraction of its outstanding obligations by paying around 7 mln levs to the gas supplier. This is the second time that the two companies have hammered out an extended debt payment schedule. In 2003, Toplofikacia Sofia was allowed to spread the payment of some 60 mln levs to Bulgargaz over a five-year period. At the time, the government became a shareholder in the heating utility, converting the Bulgargaz debt into a 42% equity stake.
Source: Dnevnik (01.10.2007)

Bulgaria's utilities regulator DKEVR approved on Monday a 9,2% increase in the price of natural gas to BGN 349 per 1000 cubic metres, nearly 2,6 percentage points less than demanded by state-owned firm Bulgargaz. Although natural gas is little used in Bulgarian households, it is one of the main fuels used by Bulgarian thermal power plants and heating utilities. With weather forecasts predicting a cold winter and consumption expected to rise strongly compared to last year, which saw a much milder winter than usual, Bulgaria's government has been scrambling for solutions to minimise the impact of the hike on end users. Bulgargaz is allowed to sell gas at a lower price, but that would mean cutting into its profit margins and would need a cabinet decision in order to do so. Bulgaria's economy and energy minister Petar Dimitrov has said the ministry could forgo its dividend to temper the price hike, but needed to analyse how the measure would impact the prices first.
Source: Darik Radio (02.10.2007)

New prices hit chemistry New prices of Bulgargaz holding SPJSC will affect chemistry and metallurgy companies as well. In such companies gas is significantly smaller part of the prime cost but has an effect. State Commission for Energy and Water Regulation announced they regulate the prices, However each of the gas companies may sell below BGN 348.96. This is the first significant increase of prices after the new contract with Gasprom. Another 30% increase are expected before 2012.
Source: Standart (02.10.2007)

New Price-Tsunami to Hit Bulgaria A new price-tsunami will sweep through the pocket of the Bulgarian. Starting in 2008, electricity and natural gas prices will increase by 10% in Bulgaria, the Chairman of the State Energy Regulatory Commission (SERC) Mr. Konstantin Shushulov stated before the MPs from the Energy Commission with Bulgaria's Parliament. "The blue fuel, which raised its price in October by 9.21%, is to become more expensive by another 10% in January, 2008," Mr. Shushulov said further. "The reason for the increase is the growing prices of the alternative fuels on the Mediterranean markets," he pointed out. "Between 7 and 10% will be the hike in electricity price next year. However, it will be introduced no sooner than July because the regulatory period is one year," said Valentin Mirchev, Deputy Chairman with the (SERC). Expensive fuels are again the cause for the electricity price-hike. Shushulov also pointed out that last year's price of imported coal had went up by 20%, and this was exactly the type of coal used in most thermal power plants in Bulgaria.
Source: Standart (04.10.2007)

Bulgartransgaz, a unit of state-owned gas distributor Bulgargaz Holding in charge of natgas transmission, transit and storage operations, said it will seek to introduce differentiated tariffs for the injection, stockpiling and withdrawal of gas in the Chiren underground repository. The new tariffs will likely take effect in the first quarter of 2008. The Chiren storage tariff is set based on the inventory volume ordered by the respective client. Some customers may benefit from lower tariffs because they don't subscribe for all services offered by the Chiren repository, said Lyubomir Denchev, chief executive director of Bulgargaz Holding. In related news, it emerged that Bulgargaz's dividend payouts for 2007 will be lowered after the government opted for a dividend waiver of a yet-to-be-specified amount.
Source: Dnevnik (08.10.2007)

Bulgargas is signing a memorandum with the gas distributing companies in Bulgaria, under the auspices of the economy and energy minister Peter Dimitrov, announced the press centre of the Ministry. The contract objective is to ensure the fair dealing with all natural gas consumers. During the 4th three-month period of 2007 Bulgargas will be selling natural gas to those who have signed the contract at the price of BGN 332.30/ 1000 cubic metres (no VAT included), i.e. the price is raised by 4% in comparison with the price of the 3rd three-month period.
Source: Zastrahovatel (08.10.2007)

Bulgargaz, the Bulgarian state-owned gas supplier, said it is in talks with private counterpart Overgas Inc. to create a joint gas distribution venture. Establishing a foothold on the segment for retail gas sales to household customers is part of Bulgargaz's development strategy. The news was confirmed by Overgas Inc. which declined to comment further. The state-run corporation intends to have a majority control in the planned joint venture. The partnership will have to be approved by the energy ministry and the government because it would involve a major state-owned enterprise. Bulgargaz will also have to apply for a gas distribution licence for the new company.
Source: Dnevnik (09.10.2007)

Local gas supplier Overgas Inc. said it has marginally lifted the sale price tariffs of its subsidiaries. The average tariff for retail customers is revised to 0.073 levs/kWh, the new price for customers from the public, administrative and retail sectors is 0.062 levs/kWh while for industrial customers it is 0.053 levs/kWh. The tariff update was prompted by an increase in the price at which Overgas buys natural gas from local state-owned distributor Bulgargaz.
Source: Dnevnik (10.10.2007)

Veliko Tarnovo-based Heat Supply signed an agreement directly with Bulgargaz for blue fuel supply. So far the company paid for the supply to Rahovetzgas-96 JSC, said company’s deputy CEO Milcho Mihailov. The law allows us to negotiate a direct supply. Rahovetzgas-96 will be paid only for the energy carrier transfer from Ivancha to Veliko Tarnovo. This will reduce our costs significantly, Mihailov told. The past two heating seasons were marked by a number of conflicts between Heat Supply - Veliko Tarnovo and Rahovetzgas-96 JSC, as the gas supplier suspended for a few times the heat supply company deliveries.
Source: Borba - Veliko Tarnovo (18.10.2007)

The Pleven district heating company has brought on stream a new gas-fired GE turbine that is expected to lower heating tariffs by around 2.62 levs/MWh over the '06-'07 winter season. The utility has the go-ahead from the nation's power regulator to charge a heating tariff of 76.15 levs/MWh with taxes from Aug 1. The company invested over 13.3 mln euro in the purchase and installation of the 32MW turbine. In related news, the heating company has acknowledged a debt of 14.3 mln levs to gas supplier Bulgargaz.
Source: Dnevnik (29.10.2007)

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

Top officials from the Bulgarian government will have a talk with the Russian Gazprom about the South Stream projects. Bulgarian ministers of regional development and economy Asen Gagauzov, Petar Dimitrov, his deputy Galina Tosheva and Kiril Gegov, a member of the Bulgargaz holding board of directors, will have a discussion with the Russians about the gas pipeline from Russia to Italy and the Bulgarian participation in it. In mid-2007, the Russian gas monopoly and ENI signed an agreement on the implementation of the South Stream project. 'We will request guarantees for the supplies at the South Stream entry point. They could be provided either by the Russian side or by Italy's ENI which will own the bulk of the transmitted gas volumes,' said Dimitrov.
Source: Standart (08.11.2007)

Bulgargaz may stop the reduce and even stop the gas supply for some heat supply companies, which delay their payments. The state-owned company said that this does not concern Heat Supply-Sofia JSC as it conscientiously pais its obligations. Not long ago the two companies signed an agreement for the space out of a BGN 150 mln debt.
Source: Pari (09.11.2007)

The price of the central heating in Sofia will become 20 per cent higher since New Year, if The State Commission for energy and Water Regulation accepts the required by Bulgargaz increase of the blue fuel with more than 33 per cent. The gas share in the heating is 70-80 per cent in the different heat-and-power supply, branch experts comment. This means that 1 megawatt per hour in Sofia will cost more than BGN 72 without VAT included compared to BGN 60.25 now. If the gas price increases by 20 per cent, the heating will register an increase of 14 per cent, if it increases by 10 per cent, the equivalent for the heating will be 7 per cent, experts estimate. They hope from the branch that the regulator will not change the price of the heat energy in the winter, though. They expect an increase in the price of the electricity, manufactured by the heat-and-power supply, which NEK is obliged to buy. The State Commission for energy and Water Regulation is worried by the demand for a drastic increase of the price of the natural gas, they say.
Source: 24 chasa (19.11.2007)

State-owned distributor Bulgargaz intends to request a 33.5% hike in domestic natural gas prices from January 1, 2008. If the proposal is accepted by the State Energy and Water Regulatory Commission (SEWRC), major industrial consumers like heating utilities, chemical, metallurgical and ceramics companies will pay 111.54 levs more per 1,000 cu m of gas or 443.84 levs without tax, a record increase for the past decade.
Source: Dnevnik (19.11.2007)

Bulgaria's state-owned gas company Bulgargaz said on Friday it plans to ask permission for a 33,6% price hike to BGN 444 per 1000 cubic meters from utilities regulator DKEVR, effective from January 1. The company argues the hike is justified by the record high prices for crude oil and other fuels. Such a drastic increase would hit thermal power and heating plants worst, since they are the biggest consumers of gas in the country.Bulgargaz also said it could ask for a smaller hike if gas consumption in winter is lower than expected. DKEVR's next meeting is on December 11. It could also ask for a lower increase if the economy ministry, which owns the company, agrees to subsidise the difference. Gas prices rose by 4% in October, instead of the initially planned 11%, after the ministry agreed to cut its planned dividend from the company.
Source: Darik Radio (19.11.2007)

The industry stunned by the threat of a gas price hit The heat-suppliers and the companies from Chemistry, Metallurgy and Ceramics face a new price shock because of the demanded rise of 33 percent of the gas prices starting January 2008 by Bulgargaz. If the demand is accepted by the State Commission for Energy and Water Regulation, industry consumers will pay BGN 111.54 more for 1,000 cub.m. natural gas, or BGN 443.84 (VAT not included). The increase will be a record for the last ten years. The news threw the companies in panic as they have not recovered yet from the shock of the July 30 to 45 percent rises. Currently they even refuse to calculate the reflection of the rise to their production waiting for a ‘No’ answer from the watchdog. Unofficial comments from the Ministry of Economy, a principal of the gas company, however, do not support such hopes. The industry has to get used to market prices and invest in energy efficient installations, said representatives of the Ministry Sunday. They turned down the possibility that the state withdraw their dividend from the gas company in order to cushion the price shock like they did a month and a half ago. Most of the Metallurgy furnaces are gas supplied. However, the steel prices will not increase even if the Bulgargaz demand is accepted because they depend on the international stock-markets, commented the head of the Branch Chamber of Ferrous and Non-ferrous Metallurgy Mrs. Politimi Paunova. That means that the difference will be on the steel companies. Mrs. Paunova explained that due to the lack of differentiated prices of the blue fuel for the different consumers, the industry will have to cover the whole rise, while in other countries the tariff for big consumers is lower than the tariff for the rest. According to her the fall of the USD by 20 percent from the beginning of the year has to be taken into account as well as the increase of the petrol prices pointed out in the Bulgargaz demand.
Source: Dnevnik (19.11.2007)

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

Bulgaria's economy minister Petar Dimitrov left the door open on Monday for more government intervention to temper the rise in the natural gas prices. "The government might intervene when the next price hike is discussed," Dimitrov said, but refused to commit himself to any definite action in that sense. Bulgaria's state-owned gas company Bulgargaz said on Friday it plans to ask permission for a 33,6% price hike to BGN 444 per 1000 cubic meters from utilities regulator DKEVR, effective from January 1.
Source: Darik Radio (20.11.2007)

The Bulgarian power regulator has asked Bulgargaz, the state-controlled gas distributor, to provide the rationale for a natural gas hike the company is contemplating for the beginning of '08. The regulator said it will everything possible to ensure the upward revision is less than the 33.5% eyed by Bulgargaz. The regulator said it has not been briefed on the idea of the energy ministry to enforce a new mechanism that will ensure simultaneous hikes in the heating tariffs and gas prices.
Source: Dnevnik (21.11.2007)

Nat'l railway carrier to hike haulage tariffs for industrial customers BDZ, Bulgaria's state-owned railway carrier, said it will raise tariffs for major industrial clients by 5.5% on average, citing the increase in electricity prices that took effect on July 1 and diesel price gains. The railway carrier has already updated its tariffs once this year, in August by 10% to 15%. Under the new tariff table, the increase for some cargo shipments transported by diesel engines will be around 30%. The biggest impact will be felt by clients shipping over short distances. The increase for them will be around 15%.
Source: Dnevnik (22.11.2007)

Kremikotvzi becomes scrap Sasho Mirchev is a secretary of the newest union Zashtita in the company organization of Kremikovtzi. He is an ex-member of Confederation of Labor – Podkrepa. He was fired because of the numerous signals for corruption in the confederation. He was inquired what is happening in the steel-maker and why there is a preparation for a strike on the ‘yellow pavement’. - Mr. Mirchev, what is happening in Kremikovtzi? - The steel mill is being chopped into pieces for almost an year. Loom 250 became a second scrap unit. Operating installations are being uninstalled. Lots of companies were engaged in order to tear the mill into pieces. It is being cut and chopped at all tracks. There is no control. The plant has become Great Andromeda Nebula. According to latest data the owner will gain BGN 1.2 bln if the whole mill is turned into scrap. Hardly someone is seeking a solution for the mill problems. The cold rolling unit does not operate since 20 November. The doors are sealed. One of the best productions before the Indian came, the plastic covered sheet iron production, is no more. - Did you ask the management what is the reason for ceasing the productions? - We made numerous signals to Alexander Tomov, but there is no response. We cannot reach Mittal. We would like to know why fully operational machinery is being cut into pieces, as well as why are company real estates being sold out in panic. - What has been sold? - We ask why apartments, mansions and stores were sold without auctions, but yet no response. Only Alexander Tomov tells what the prices will be. He manages everything and answers to no one. The state owns 25 per cent, however, nothing is done. They were in a hurry to sell everything and managed to do so only in three months. There are absurd situations in which apartments have been sold while the tenants have not been warned and the new owner go and throw them away by force. I am aware of three cases similar to this, but they are a lot more. - Are the money from cutting for future investments ot for the company liquidation? - That is the big question. These funds have to return to Kremikovtzi as the mill is finished without them. It is the only steel plant that was not granted an integrated ecological evaluation. Now the two bought unions will force the government to grant it as no money have been invested for ecology and pollution reduction. It may seem to the detriment of Kremikovtzi but the only way is to shut down the polluting installations and to modernize the remaining. The problem is that no one wants to invest. They may be granted an integrated permit but then the State will pay the fines and they will keep on stealing. - What is the Kremikotzi future? - If Kremikovtzi is not modernized up to two years, it will shut down all by itself. It is like a 100 year-old man that is being prepared for an Olympics. The death is tolerated by the state. Why is nobody looking for the debts of the company? Why are Bulgargaz closing their eyes? Other plants can pay everything, but not Kremikovtzi! Unofficial information shows that the debts is near BGN 1 bln. Half of it is owed to the state. They are saved by the good market conjuncture. Currently the metal prices are high. However, there is a cycle trend in the price collapses of 5-6 years. In a situation of such a collapse, Kremikovtzi will shut down immediately. - Do you see any solution? - The State has to intervene. Mittal has not invested a single lev in any production. A real investor has to be found and the owner has to be changed. Otherwise the plant will be a Moon sight in an year or two. The Confederation of Independent Trade Unions in Bulgaria and Confederation of Labor – Podkrepa saying that everything is normal, bearing all that in mind, is not serious. They were bought with apartments. One of the Podkrepa chairmen Luydmil Pavlov was given an apartment in Metalurg quarter, block 32. It is not clear whether he will pay for it. The former chairman Cvetozar Boyanov was given a 110 sq.m. apartment for BGN 5,000. The water supply company bought Podkrepa the Suzuki jeep.
Source: Standart (26.11.2007)

EVN Bulgaria will clear off the debts of Heat Supply-Plovdiv to Bulgargaz holding and the negotiations about this are the reason for the delayed finalizing of the deal, Todor Nikolov, the executive manager of the Privatization Agency said in an interview for Darik. This means that the deliveries of natural gas for Plovdiv will not be stopped and 40 000 clients of the Heat Supply will not be left without heating because of the unpaid BGN 14,5 million for gas.
Source: Darik Radio (27.11.2007)

Austrian utility company EVN is nearing an agreement with state-owned Bulgargaz on the unpaid gas bills of a district heating company it owns in Bulgaria, sell-off agency chief Todor Nikolov told Darik Radio on Tuesday. Bulgargaz recently warned the Plovdiv heating utility it will ration down gas supplies if the unpaid bills are not settled. The two sides are engaged in intensive negotiations and the agreement should be concluded soon, said EVN.
Source: Dnevnik (28.11.2007)

Gas price to be considered It is still unclear what the gas price increase from 1 January 2008 will be, said Minister of Economy and Energy Petar Dimitrov at an Energy Commission in Parliament meeting. He pointed out that currently Bulgargaz representatives and Ministry experts discuss the matter so that the gas price do not injure any of the parties. According to Dimitrov the situation in most of the heat supply companies is outrageous. It is not proper to assume the debts for Bulgargaz with transportation fees and other money, he said. It is possible to unite the energy companies in Bulgaria into a holding until the middle of next year, added Dimitrov.
Source: Standart (29.11.2007)

Bulgargaz, the Bulgarian state-controlled gas distributor, said it is in talks with several banks to sell a debt it is owed by Kremikovtzi, the nation's biggest steel maker. The steel mill rescheduled four years ago a 35 mln lev debt to Bulgargaz, spreading the repayment over a 10-year period. The debt has since been whittled down to 18 mln levs. Bulgargaz executive director Dimitar Gogov said there has been interest towards the debt on the part of some banks but that the talks with the Kremikovtzi management are still ahead.
Source: Dnevnik (06.12.2007)

Bulgargaz intends to propose to the nation's power regulator a 26.5% increase in domestic gas tariffs from January 1, 2008, backing off from earlier demands for a hike of 33.5%, said a source from the state-owned gas distributor on condition of anonymity. The new proposal will lift the price to 441.40 levs per 1,000 cu m. The gas distributor will motivate the proposal with the cheaper oil which recently fell from around $99 per barrel to $86.
Source: Dnevnik (07.12.2007)

Bulgargaz tries to sell Kremikovtzi debt Bulgargaz tries to sell the debt that Kremikovtzi owes to the gas holding. The matter is for BGN 19 mln. It will be offered to several banks and the talks will start immediately after New Year’s Eve, Bulgargaz informed. We are ready to negotiate with all international financial institution on the local market. Real offers will be made not until February, forecasts the holding. Until then the fund market that is currently unstable will calm. Kremikovtzi shares dropped recently due to the troubles with the implementation of the EUR 325 mln bond emission obligations. In the present conditions there can hardly be found a bank to cover more than 50 percent of the Kremikovtzi debt, said the gas monopolist. The debt of the steel-maker was rescheduled five years ago when it was BGN 36 mln. Nowadays it is cut in half. We welcome the idea of Bulgargaz. We will be able to sell our claims to a bank which is a sign for our financial stability, commented Kremikovtzi. They have not yet been approached, however, on the idea of claim sale. Other big debtors to Bulgargaz are the heat supply companies, informed ENErgy Commission deputies on Wednesday the CEO of the gas holding Lubomir Denchev.
Source: Standart (07.12.2007)

After recrunching the numbers, the Bulgarian energy ministry has come up with a domestic gas tariff increase lower than that eyed by gas distributor Bulgargaz from January 1, 2008. Pricing in current gas inventories and U.S. dollar fluctuations, the energy ministry said gas tariffs should be revised upwards only by 16%. That compares with the 33.5% increased proposed a month ago by Bulgargaz. The gas distributor is scheduled to announce Monday the exact tariff hike it has proposed to the State Energy and Water Regulatory Commission. The gas company has since back-pedaled, revising the hike down to 26.5% but sources form the commission told Dnevnik the maximum adjustment that the regulator is likely to sanction is up to 20%.
Source: Dnevnik (10.12.2007)

The price of the natural gas may go up by 16% as of the beginning of 2008, rather than by the 33% suggested by Bulgargaz, Galina Tosheva, deputy minister of economy and energy, said. The ministry's estimates show that the price hike demanded by the state monopoly is unreasonable. Some 9% of the price increase suggested by Bulgargaz may be offset by the declining value of the US dollar, according to Tosheva. When the demand was made the USD was valued at BGN 1.44 and currently it is traded for BGN 1.33. According to the Ministry reports, Bulgargaz may decrease the gas price growth by 5 more percent if the supplies in the Chiren gas storage are used. The gas in it costs less than the gas sold to us by Gazprom. According to Bulgargaz CEO Lubomir Denchev those supplies can be used only if emergency occurs. However Tosheva cannot point out what quantities from Chiren will be used and on what basis the analysis was made. 2 more percent may be dropped out of the price increase if Bulgargaz guaranteed profit is shrunk to 1 percent from 2 percent, Tosheva added.
Source: Pari (10.12.2007)

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

Bulgargaz Holding has signed a deal for the purchase of 0.1% of the outstanding stock of Romanian gas distributor Transgaz, Bulgargaz CEO, Lyubomir Denchev, said. The investment amounts to BGN 1.1 million and is Bulgargaz's first acquisition of foreign stock. Bulgargaz also plans to take part in large-scale investment projects jointly with companies such as OMV, ERV, Gaz de France, Denchev said. In order to secure funding for such projects Bulgargaz will have to get listed on the Bulgarian Stock Exchange (BSE). Some 20-30% Bulgargaz's stock may be listed on the BSE. Thus, the market capitalisation of the company will amount to between EUR 4 billion and EUR 6 billion, Denchev said. Bulgargaz also plans to set up its own engineering company, which will be part of the holding structure. The new company may also be a joint venture but Bulgargaz will own 50% of its capital. Bulgargaz also considers getting involved in the gas distribution business. A considerable improvement has been achieved in the projects for transnational pipelines in which Bulgargaz participates. A meeting with the partners in the Nabucco project will be held shortly. The sixth participant in the project will be disclosed after the meeting.
Source: Pari (11.12.2007)

Unpaid natural gas worth millions of BGN is the reason for the warning periods for stop of supply at the end of the year, which Bulgargaz has announced for some of the heat supply companies, said Valentin Terzyiski, spokesperson of the innitiative board of the heat supply managements. Heat Supply-Vratsa SPJSC owes BGN 3.8 mln and a warning shut down date on December 21, 2007. Heat Supply- Burgas SPJSC owes BGN 10 mln and has a warning shut down date on December 27, 2007. Both companies are owned by the energy boss of Bulgaria Hristo Kovachki. . Heat Supply – Pleven SPJSC has a debt of BGn 13 mln and a warning shut down date on December 21, 2007. Sofia heat supply company owes BGN 140 mln has no warning shut down date.
Source: Sega (20.12.2007)

Bulgaria's utility regulator DKEVR and state gas monopoly Bulgargaz failed to reach an agreement on Wednesday regarding the gas price hike planned for January 1. Earlier this month, Bulgargaz demanded a 26% increase to stay profitable and claimed it would need at least an 11% increase to maintain a cash flow that would allow the firm to pay its own suppliers. DKEVR has said it is willing to allow 8% quarterly hikes, starting from January, but Bulgargaz insists it is not enough. The regulator is due to announce its decision on Thursday. It does not need Bulgargaz' consent to set the ceiling for the gas prices, but met with the company's executives hoping that Bulgargaz would agree to its counteroffer. Bulgargaz has said its rationale for the drastic hike request was the big rise of fuel prices on global markets, but DKEVR is unwilling to trigger the inevitable requests for central heating price hikes, since all heating utilities use gas as their primary energy resource.
Source: Darik Radio (20.12.2007)

There will be a 9.87 per cent increase in the price of the natural gas since January. That’s what the Energy regulator decided. The price of the blue fuel will be BGN 365.64 per 1000 cub. m. VAT not included. This is a BGN 33.34 increase instead of the wanted BGN 68.
Source: Standart (21.12.2007)

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)

Heat supply companies in the country will be a priority for gas supply if the weather conditions worsen, decreed yesterday the Minister of Economy and Energy – Petar Dimitrov, to the management of Bulgargaz. He called for the head of Bulgargaz, State Commission for Energy and Water Regulation and Sofia Heat Supply, after numerous signals that the heat supply in several cities has been weak since Thursday. This means that Bulgargaz will have to suplly its biggest debtors as the problems were registered in Sofia, Plovdiv, Vratsa and Veliko Tarnovo.
Source: Sega (08.01.2008)

Rahovetzgas-96 JSC stopped the gas supply for Heat Supply-VT in Tuesday morning and Veliko Turnovo remains without heating. Nobody knows how long 4000 households, 11 schools and the National Military University will be without heating, said Milcho Mihailov, a deputy executive director of the heat supply company. The argument is to whom Heat Supply-VT has to pay BGN 600 000 for the natural gas in January – to Rahovetzgas-96 JSC or to Bulgargaz holding SPJSC.
Source: Dnevnik (23.01.2008)

Heat Supply-Sofia spends BGN 1.5 mln a day for gas and collects bills worth BGN 400-700 thousands from its customers. That was announced by the head of the company Petko Milevski. He was summoned at the Municipal Financial Commission because of a warning letter from Bulgargaz. For the 20 days from the beginning of the year Heat Supply-Sofia has made a BGN 50 mln debt, alarmed the gas-supplier. The debt has already been decreased to BGN 30 mln, said Milevski. Every year the heat-supply unit makes short term debts and manages to pay off until the summer. However an old debt of BGN 137 mln is still paid off on parts.
Source: Standart (23.01.2008)

The privatization of Heat Supply-Sofia should finish until the end of 2009 at latest, announced the Minister of Economy and Energy Petar Dimitrov. The company should be sold as a whole and not at parts. If Sofia Municipality agrees we will do it together. Otherwise only the 42 percent owned by the state will be privatized together with the debt to Bulgargaz worth BGN 150 mln, added the Minister.
Source: Monitor (24.01.2008)

The natural gas agreed with Gazprom subsidiaries for January has been exhausted. In certain moments Bulgariaz has consumed 13-14 mln cub.m. in stead of the agreed 9 mln cub.m. Russia supplies Bulgaria on ‘free will’. The supplies may be shut down at any time in case Moscow decides to supply according to the contract. ‘In fact, Russia has suppplied us with about 20% more natural gas this month’, said Bulgargaz PR – Ivelina Barneva. According to her the higher consumption will not affect the neighbour countries. The crisis situation forced Minister of Economy and Energy Petar Dimitrov to gather at an emergency meeting representatives of Bulgargaz and of the big heat supply companies in Sofia, Plovdiv and Pleven.
Source: Trud (29.01.2008)

Negotiatons for Kremikovtzi Finished Within Hours Negotiations over Kremikovtzi wil be finished within hours, announced the minister of energy and economy, Mr Peter Dimitrov, after his meeting with the current owner, Mr Pramod Mital who however did not make any comments, reported the National Radio. The company cannot be declared bankrupt and the investors are to follow the agreement made, Mr Dimitrov also said. There were several applicants for the purchase of the combine but the cabinet contacted only Mr Konstantin Zhevago. EC, however, is launching new proceedings against Bulgaria reads a notification letter sent by the mayor of Sofia, Mr Boiko Borissov, and addressed to direction of Environment of EC. The complain was filed in view of the excessive pollution the Kremikovtzi manufacture inflicts.
Source: Zastrahovatel (30.01.2008)

They tighten the control over enterprises with more than 50 per cent of State participation in the capital. These companies will be under a special supervision by the Minister of Finances Plamen Oresharski. This is what a decree for supervision of the financial state of the State companies says.
Source: Standart (31.01.2008)

Moscow and Brussels in Gas Race Moscow and Brussels started a real gas competition in implementing the two gas projects - the Russian South Stream and Nabucco, considered an alternative for Kremlin's influence in the EU. Nabucco gas pipeline can start functioning in 2013, Bulgaria's Minister of Energy, Petar Dimitrov said in Vienna. To him, this is the optimistic variant for the start of gas supply on the European pipeline. The pessimistic one has not been considered yet. The first supplies of gas from Russia to Italy along South Stream are expected to start in 2013. During the visit of Russia's President Vladimir Putin to Bulgaria in the middle of January, the Bulgarian Government decided to let the pipeline cross the territory of Bulgaria. Now Europe seems determined to outrun Russia and start Nabucco project earlier than South Stream. And it seems that Sofia's decision has triggered the action on the otherwise quite slumbering lately Nabucco. Experts see as the darkest option for Nabucco to be inaugurated in 2025, the Standart learnt. The main obstacle for the implementation of the project is the lack of natural gas supply. Nabucco Pipeline are explicit that gas will flow in the pipeline in 2013 the latest. Yesterday in Vienna Bulgaria's Energy Minister and his counterparts from the other participant countries in Nabucco project - Turkey, Romania, Hungary and Austria singed a memorandum for acceding a sixth shareholder in the pipeline - the German giant RWE. The officials also agreed on accelerating the construction of the pipeline. The accession of the German energy company in the deal diminishes the shares of the previous participants to 16,7% each. The French Gaz de France is also willing to participate in Nabucco.
Source: Standart (06.02.2008)

Distraint on Kremikovtsi Land Bulgarian state institutions have levied a distraint on Kremikovtsi's land thanks to a big state-owned company that has lent large sums to the steel works, anonymous sources from Bulgaria's Economy and Energy Ministry told the Standart. The claim was laid in Sofia City Court last week and has not been answered yet. The claim was made at the explicit request of Bulgaria's Prime Minister, Sergey Stanishev himself in order to guarantee that the steel works will not fall into the hands of speculators who could sell the tempting property as separate businesses. The land owned by Kremikovtsi is about 17 million sq. m. and costs over a billion levs. Over three thousand workers gathered to protest in front of the plant yesterday. Trade unions started negotiating a 25% wage rise.
Source: Standart (07.02.2008)

The international project company for the construction of the pipeline Burgas – Aleksandrupolis was registered in the capital of the Netherlands – Amsterdam. The name of the company is Trans Balkan Pipeline. The Russian participant in the project holds 51 percent of the capital. The Bulgarian share is 24.5 percent of the Proektna programa Burgas - Aleksandrupolis BG JSC – a consortium of the state-owned Bulgargaz holding SPJSC and Technoexportstroy SPJSC. The Greek share in the project is 24.5 percent as well.
Source: Darik Radio (08.02.2008)

Stanishev Stops the Sale of Bulgargas Bulgargas and NPP Kozloduy will be the only state-owned energy giants, Standart learnt. PM Sergey Stanishev ordered the gas holding to be removed from the government program. One of its versions dated January 31 provides for the privatization of Bulgargas. Currently the company is on the restrictive list and is not a subject to denationalization. It is of key importance for Bulgarian economy as it provides natural gas for the country and takes part in strategic projects such as Burgas-Alexandroupolis pipeline, South Stream and Nabucco. If Bulgargas becomes a private company that will deprive the state of million-euro profits coming from transit fees and dividends.
Source: Standart (08.02.2008)

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)

Bulgarian state-controlled Bulgargaz Holding and France's Dalkia, owner of the Varna heating utility, intend to set up a joint venture for co-generation in neighboring Macedonia, Dnevnik learned from Bulgargaz sources. The investment is envisaged in the business plan of the gas distributor through 2012 approved last year. It was not immediately clear how the two partners intend to split the equity of the future joint venture.
Source: Dnevnik (20.02.2008)

Mittal Begs for Three Months' Grace The management of Kremikovtsi Steel Works requested from the Bulgarian government that the company operates for three more months under current owner Pramod Mittal. The plant has been supplied with raw materials enough for it to operate for 90 days and make 100-110 thousand tons of steel products. The request was made in a letter to the Bulgarian government. Mittal's subordinates pleaded to the government for understanding and entreated that the company discharges its current financial obligations to state-owned companies such as BDZ (the national railway operator), National Electric Company (NEC) and Bulgargaz alone, otherwise an "extremely negative" situation would befall Kremikovtsi the outcome of which would be unpleasant for both the company itself and all parties interested in it.
Source: Standart (20.02.2008)

Unions: Kremikovtzi goes out to 24 hours if the Council of Ministers does not take urgent measures The syndicates in Kremikovtzi demand urgent intervention from the government and the creation of a schedule for the payment of the debts to the natural gas and electricity suppliers, as well as to the BDZ system. If the necessary political steps are not made, we go out in front of the Parliament on Friday, together with the miners, chemists and power engineers stated Vassil Yanachkov, head of the Confederation of Independent Trade Unions (CITU) at Kremikovtzi. According to him the Kremikovtzi operations must not stop and then the steelmaker will be able to pay off the old and the current debts as well. If this does not happen and Bulgargaz and BDZ take the measures they threaten to take, Kremikovtzi will cease operations in the next few hours. According to CITU data, currently Kremikovtzi is supplied with smaller quantities of natural gas and BDZ has blocked the supplies with resources and materials, which hampers the realization of the ready output.
Source: Darik Radio (21.02.2008)

The integration of state-owned National Electric Company (NEK), Kozloduy nuclear power plant (NPP), Bulgargaz, Maritsa Iztok-2 thermal power plant (NPP) and Maritsa Iztok Mines may result in a delay in the implementation of the project for the setting of the Belene NPP, Jan Skvaril, management consulting director at Deloitte Bulgaria, who is also in charge of the development of the project, said. One of the major challenges ahead of the energy holding is the delay of projects that are already underway, an analyses of the consultancy company shows. The reasons may be purely organisational, such as the delay in the making of a decision, Lyudmil Garkov, who is in charge of the corporate finances at Deloitte said. It is unclear as to who will take the decisions on projects such as the Bourgas-Alexandroupolis, Nabucco and Belene NPP after the setting up of the holding, according to Garkov. The state, however, has insisted that the delays of these projects be avoided. Another challenge before the energy holding is to secure investments for all these projects. This depends entirely on how transparent the management of the holding will be, according Skvaril. The fact that the structure of the five companies is very different may also obstruct their consolidation. This may lead to the ineffectiveness of the holding, according to Deloitte's analyses. The new structure will not have enough resources to expand to other countries. The inability to take decisions, the difficult allocation of responsibilities, the poor motivation of the managers of the different companies and the prolonged decision making process will be among the weaknesses of the new holding company, according to Deloitte's analysis. If the state manages to overcome all these challenges, the megaholding may be useful after all. The energy holding will be able to attract more investments, to secure the supply of energy resources and will be competitive. It also will turn Bulgaria into a regional a player on the regional energy market. One of the major tasks of the holding will be to propose changes to the regulatory framework in the energy sector. The ministry of economy and energy will remain the majority owner in the five companies at the first stage of the establishment of the holding. Equal minority shares in the five companies will be transferred to the parent company. The five companies will remain legally and financially independent but will work under the new structure. The five companies should be restructured in two years, if everything goes as planned. The second stage, which envisages the setting up of an operative holding will be launched afterwards. It will will also be decided whether the new company should be listed on international stock exchanges.
Source: Pari (21.02.2008)

Bulgaria Keeps Mittal in Check Bulgaria keeps Pramod Mittal in check after the state won a legal case and made Mittal pay 239,35 million levs in penalties to the national Post-Privatization Control Agency for failing to fulfil the privatization contract. "The case has been going since 2006. Last week, the court finally ruled," Bulgarian Minister of Economy and Energy Petar Dimitrov said. "We'll obtain a writ of execution, and if they refuse to pay, other steps will follow," Minister Dimitrov said in answer to the question whether the state would resume ownership over Kremikovtsi. "For now the main packet of shares is in the hands of Finmetals, and we'll have to consider well what our next move will be," Minister Dimitrov added. He also declared the government would reject Mittal's request to be given a three months of gratis payment to the National Electric Company, BDZ (the state-owned railway transport enterprise) and Bulgargaz. "Mittal made a promise that he would invest US$100 million under the viability plan for Kremikovtsi, but he did not keep it. So I say enough with the lies. The government will not trust tears anymore," Minister Dimitrov concluded. The measures adopted today keep Kremikovtsi steel at bay. Apart from the penalties Kremikovtsi has to pay and its current and overdue liabilities to the state-owned giants. There has been a distraint on the company's shares, which are property of Finmetals, by the Post-Privatization Control Agency since 2004. To top it all, a week ago the State Receivables Collection Agency demanded a ban on the sale of 500 hectares of land, possession of Kremikovtsi.
Source: Standart (21.02.2008)

Bulgarian govt refuses to shield Kremikovtzi from creditors Bulgarian economy minister Petar Dimitrov Wednesday refused to grant the request of local steel mill Kremikovtzi for a three-month leeway on outstanding debts as the beleaguered company works down its operative financial obligations. Dimitrov said Wednesday that Finmetals Holding, which owns a 71% stake in the nation's biggest steel maker, has been sentenced by the Sofia City Court to pay 239.2 mln levs in investment defaults to the Post Privatisation Control Agency (PPCA). The ruling is final as Finmetals Holding has failed to lodge an appeal in time. 'There is no more room for compromise,' said Dimitrov in response to the request of the Kremikovtzi management that the government keep at bay for another three months the economy ministry and its investment commitment pressure on the plant and the state-controlled railway carrier BDZ, gas supplier Bulgargaz and power utility NEK which have been clamoring over unpaid bills. The three-month breathing room, Kremikovtzi owner Pramod Mittal argued, would allow the company to eke out an operative profit and find a strategic partner to shore up its business. BDZ last week refused to ship any Kremikovtzi cargo while the trade unions at the plant said Wednesday that gas supplies had been lowered. The court-ordered injunction that the PPCA had imposed on Kremikovtzi shares held by Finmetals Holding four years ago did not prevent then owner Valentin Zahariev from selling the majority owner of the mill to Indian businessman Mittal. The award of 239.2 mln levs equals the amount that the majority owner was obliged to furnish as security for the implementation of the investment program in the five years after the privatisation deal. Going forward, Finmetals Holding will either have to voluntarily make the payment as the court ordered or the debt could be enforced through a writ of execution. No one at the Mittal press office in Sofia was commenting Wednesday. The government has so far recognised $140 mln in Kremikovtzi investment made by the owner versus a commitment for an investment of $300 mln in 1999-2004. The Finmetals Holding stake is also furnished as security on bond placed by Mittal in 2006. In an effort to get the plant on the path to recovery, the economy ministry has already started talks with the biggest among the Kremikovtzi noteholders. If the noteholders decide to take control of the steel mill through Finmetals Holding, they will end up debtors to the state under the Sofia City Court ruling. In that case, one course of action mulled by the noteholders is selling off the plant's blast furnaces, the coke and chemical production unit and the continuous casting line, key assets whose disposal would idle the steel mill. Collaterising the bond with certain assets of the plant was approved by the Bulgarian government which controls a 25% stake in Kremikovtzi. A representative of the noteholders suggested to Dnevnik a couple of days ago that the government issue 325 mln euro in debt to repay the notes and regain control of the company. The preliminary financial results of the company show that it narrowed its yearly loss to 35.93 mln levs in 2007, down from 280 mln levs at the end of 2006. The report shows that losses were tempered by the sale of assets. The revenues booked under 'miscellaneous', the item tracking asset revenues and write-downs, indicated that the company pocketed 418.248 mln levs with overall output sales at 989 mln levs. In Q4 2007, Kremikovtzi posted a net profit of 30.982 mln levs versus a loss of 63.399 mln levs a year ago. The last quarter also saw the disposal of the bulk of assets that were shed in 2007 with revenues thereof reaching 392 mln levs versus 210 mln levs in output sales. A look at the non-current assets of the company reveals that in the last three months of 2007, the company parted with land booked at 11.95 mln levs, buildings worth 9.45 mln and machinery worth 19.57 mln levs.
Source: Dnevnik (21.02.2008)

Kremikovtzi execs unfazed by govt hardball Senior Kremikovtzi executives appear unflustered by the refusal of the Bulgarian government to coddle the owners of the struggling steel maker. Former chief executive director Alexander Tomov said the government is following a certain scenario and that all actions to date have been accurate and appropriate. While resisting pressure to sell, the Bulgarian government has repeatedly indicated that Indian businessman Pramod Mittal is no longer acceptable as a Kremikovtzi owner. On Wednesday, economy minister Petar Dimitrov said the government will cut no more slack when it comes to the continuing failure to honor obligations stemming from the privatisation contract and to the overdue payments to state-controlled resource and service providers like Bulgargaz, NEK and BDZ. The ruling against Mittal-owned Finmetals Holding, a 71% shareholder in Kremikovtzi, handed down by the Sofia City Court is seen as a further blow to the Indian businessman. Finmetals Holding has been ordered by the court to pay to the Post Privatisation Control Agency 239 mln levs for the breach of security provisions in the sell-off contract. In the aftermath of the ruling, the government is now a creditor to the Kremikovtzi majority owner as well as the steel mill itself. In case Finmetals fails to comply with the court ruling, the government will have sufficient grounds to have the privatisation contract voided, said Rusi Statkov, member of the PPCA supervisory board. To get to that point, however, an additional analysis of the pros and cons of such a move will have to be made, said Statkov. The government still controls 25% of the steel maker. Finmetals' failure to appeal the Sofia City Court ruling further complicates the steel mill's indebtedness relations with its multiple creditors. Bulgarian Steel Finance, an outfit specially set up for the placement of a bond issue in 2006 collaterised with some Kremikovtzi assets, is owned by Mittal's Global Steel Holding which in turn controls 71% in Finmetals. Under these circumstances, the noteholders could find themselves both majority owners and creditors of the steel maker. The state, for its part, could end up as a creditor to the noteholders if they assume control of Finmetals or as a debtor to them in case the privatisation contract is scrapped and Global Steel/Bulgarian Steel Finance dodge their obligations towards the noteholders. The government has so far been reluctant to seek the cancellation of the sell-off contract and has instead focused on pressuring Finmetals to honor its obligations, said Statkov. The intentions of some of the noteholders to dismember Kremikovtzi and then shut it down thus clearing the way for a reported office and housing development on the plant site run counter to the interests of the Bulgarian state. Prime minister Sergei Stanishev has himself publicly opposed the closure of the steel maker while the government has engaged in talks some of the larger noteholders under a format that excludes Mittal. The only issue on which the two sides have so far found common ground is Mittal's failure, be it through Global Steel Holding or Finmetals, to deliver on all undertaken commitments.
Source: Dnevnik (22.02.2008)

Bulgargaz limits the gas supply for Kremikovtzi Bulgargaz limits the gas supply for Kremikovtzi because of upaid financial debts, said the executive director of the gas company – Lyubomir Danchev. The supplies for the steelmaker will be reduced to the technological minimum within hours. Bulgargaz will reduce the supplies as much as there is enough only for the operations of the furnaces of the plant, said Danchev. If the gas supply is totally ceased, there might be a natural cataclysm, explained Danchev. Kremikovtzi owes Bulgargaz BGN 19 mln and has current unpaid bills worth BGN 6 mln. Danchev also said that the steel plant has began to pay off the extended debts, but nothing is done for the current accounts. ‘Of course that we care about whether the plant is going to be shut down’, said Danchev and added that Bulgargaz has tried to sell Kremikovtzi debts to a bank institution.
Source: Darik Radio (22.02.2008)

Bulgarian govt trying to wrest Kremikovtzi from Mittal's grasp State-controlled gas distributor Bulgargaz announced last Friday it has ramped down supplies to Kremikovtzi over the 19 mln levs in unpaid bills it is owed by the nation's biggest steel mill. The supplies are lowered to the technological minimum that will allow the Kremikovtzi furnaces to remain operational but without any real output. The move puts Kremikovtzi owner Pramod Mittal in a position where he will be unable to generate any profits from the company's business. At the same time, the state, a 25% shareholder in Kremikovtzi, has repeatedly opposed any moves to have the steel mill adjudicated bankrupt or liquidated. The government would like to find a new investor with strategic interest in rebooting the company. Since the majority stake in the steel maker is subject to a court injunction, a likely sale would involve Finmetals Holding which owns the majority stake. Last week, Finmetals, owned by Mittal's Global Steel, was at the receiving end of a court ruling awarding the Bulgarian state 239.2 mln levs in damages stemming from sell-off contract defaults. In its new capacity as a key creditor, the government will now have more leverage over Mittal. In case Finmetals is unable to make the court-ordered payments to the Post Privatisation Control Agency (PPCA), the sell-off contract may be voided, a development that carries a certain risk not only for Mittal but also for the holders of notes collaterised with some Kremikovtzi assets. The noteholders may become the new owner of Finmetals Holding, inheriting the Kremikovtzi stock injunction and a sizeable debt to the Bulgarian state. A foreign financial investor holding a big packages of Kremikovtzi notes said the court ruling in favor of the PPCA was a blow to the interests of the noteholders. The last-ditch plans of the noteholders do not rule out the liquidation of the mill, including the stripping of assets. In order to avoid such an outturn, the noteholders have pressured Mittal to hire Merrill Lynch to advise the sale of the mill. The Indian businessman said it would take around three months to find a strategic partner. To ensure the best possible outcome, Mittal had asked the government to hold off from cutting gas supplies and other services but his request was rejected. Last week, state-owned railway carrier BDZ also reduced the handling of Kremikovtzi shipments to the technological minimum. The biggest noteholders would like to see a public auction for the mill but it is not clear if the last run of events and the pressure exerted on Mittal by the government have been co-ordinated with the noteholders. Representatives of the noteholders had a series of meetings at the economy ministry with less than encouraging results. Ukrainian billionaire Konstantin Zhevago is the only candidate buyer for Kremikovtzi to step forward so far
Source: Dnevnik (24.02.2008)

Bulgaria's Bulgargas Holding will participate in the construction of a 200-megawatt co-generation facility at a heating utility of Macedonia's state-owned LM. Most probably our interest will be about 20%, Bulgargas's CEO, Lyubomir Denchev, said. The procedure for selection of partners has to begin within a few months. The contract will be signed by the middle of 2008. France's Dalkia is also expected to take part in the project. Bulgargas's participation in the project will help it diversify its investments, Denchev pointed out.
Source: Pari (25.02.2008)

The steel plant is stick with USD 1.2 bln -Mr. Banker, what is the real state of kremikovtzi? -We are not privileged in receiving information. But according to our estimates, Kremikovtzi debts exceed USD 1.2 bln, which includes the current debts to suppliers worth about USD 500 mln. We suspect that right after Global Steel Holding Limited received control over Kremikovtzi in 2006, they found a big ‘hole’ in the means of circulation of about USD 50 mln. As the former owner said later, the missing resources are due to ‘seizure of output at the custom storehouses and at other places’. As a whole, the plant is at very bad shape. But a simple repair works and renovation of some installations would allow it produce 124 thous. tons a month and it was accomplished in the first quarter of 2007. -Is there a dnger for the plant to be shut down or for the state to become a co-debtor on the bond loan and be forced to pay the EUR 325 mln? -We have always stated that this bond emission is a quasi-sovereign risk. I can think of at least six reasons for that and I think that the UK court would agree with me. First, the government owns a ‘gold share’ of 25.29 percent. Second, the government has a representative in the Supervision BoardThird, it controls the issuing of the integrated permits. Fourth, the state is ‘Number 1 creditor on the line’ through Bulgargaz, BDZ and NEK, which can at any time force the plant cease operations. Fifth, at the general shareholders meeting in 2006, the state voted ‘For’ the bond issue by its 25.29 percent. The state, represented by the government, has been a direct beneficiary of the emission income. The British court would find that very interesting and it is possible that the court may declare the state an obligated entity on the bond pay off. Sixth, the distraint over the Kremikovtzi shares owned by Finmetals, which is in state’s favor. If the shares distraint is executed, like Minister Petar Dimitrov said a few days ago, it would make the state an owner of 96.29 percent of Kremikovtzi and would have the control over the plant. This would activate the condition in the bond loan contract - Change of control. According to the British legislation, the bondholders may demand a preliminary pay off of the bonds at 101 percent of the principal. -Do you think a solution can be found? -Yes, there is a solution, and it is the state to take control over the plant. The Kremikovtzi assets we see are several. The first one is the land. It may be sold for about a billion EUR after long and hard negotiations with some country in the Persian Gulf, which dreams to construct a Satellite City. There are a lot of other assets that can be realized into profit by an experienced strategic investor and can be used to finance the expansion of Kremikovtzi. -Do you have any information if the bond holders consider a preliminary demand for pay off? -Some of the big bondholders owning more than 40 percent of the bond wish a preliminary acquittal. The agent of the bondholders has already declared that such a demand is necessary by the holders of at least 20 percent of the bonds. If such a demand is made, there will be a gratis period after which the non-fulfillment on the whole sum would become effective. The acquisition of the security is a different matter and I suspect it has to be decided into a Bulgarian court. As far as I know there is no precedent by which the court would go. -Do you have any information about the plans of Pramod Mittal to sell the plant in the next 3 months? -There are several strategic investors. Among them are two Russian, one Ukrainian, one Indian, one European and one American. I cannot say how serious their interest is. Global Steel has not allowed a single potential investor to make a preliminary inspection.Besides, Finmetals shares are providing the bond loan and there is not a scenario ‘Mittal sells Kremikovtzi’. Of course, there is an option that Pramod Mittal swallows his pride and calls his nephew Aditia Mittal, who certainly observes the story from his palace in Kensington Palace Gardens in London. Kremikovtzi debts may seem enormous for the ordinary people, but it is pocket money for Lakshmi Mittal, father of Aditia, and it can easily fit his Balkans operations.
Source: Standart (25.02.2008)

Another Indian Buyer for Kremikovtsi Indian Essar Steel Holdings Ltd eyes Bulgaria's largest steel works - Kremikovtsi. The company that failed to enter the tender for Navigation Maritime Bulgare is now considering options to become a strategic partner in the steel works, brokers from London told the Standart. The sources point out that these Indians are ready to get really interested in the complex only after the property issues are cleared and the bond holders are satisfied; presently the current Kremikovtsi owner, Pramod Mittal owes them 325 million euro. The other parties interested in Kremikovsi are Ukrainians Kostyantin Zhevago and Rinat Akhmetov, a Russian company possibly related to Oleg Deripaska, a European company and the US Steel. "We will not allow production and draining of Kremikovtsi at the expense of the state," said Bulgaria's Minister of Economy and Energy Petar Dimitrov. Minister Dimitrov explained that was the reason the state had decided to let the steel works function at "artificial respiration" by supplying it only with the minimum amounts of electricity and gas from the state-owned National Electric Company and Bulgargaz. "Bulgaria cannot be such a creditor. I cannot think of creditors who loan money without receiving any guarantee they will have it back some day," Minister Dimitrov commented further. Petar Dimitrov said he was doing his best "to keep the works alive but we cannot stimulate its operation for free."
Source: Standart (26.02.2008)

Zhevago has prepared USD 1 bln for Kremikovtzi Ukrainian billionaire Konstantin Zhevago has drawn a USD 1 bln loan from the London branch of Deutsche Bank. A part of the funds will go for the Kremikovtzi purchase, according to bankers from the City. Another part – about USD 185 mln, is for the development of the mining fields near Poltava. The investment boosts the production of the ore pellets with high metal content to the highest quality and the effectiveness reaches 15 percent, according to analyses of Zhevago owned Ferrexpo. His 443,326,058 shares in Ferrexpo plc cover the money through the company Fevamotinico S.a.r.l. The agreement was made on February, 5, said people familiar with the matter. Zhevago is supposed to own 75 percent of Ferrexpo, market capitalization – USD 3 bln. As of Deutsche Bank practice, the bank would not loan money for more than 35 percent of the shares at pawn, which is a little under USD 1 bln. ‘There is a secret plan for the sale of the steel plant. It is impossible that everyone to urge for their money at same time’, said head of Confederation of Labor – Podkrepa representation at Kremikovtzi – Lyudmil Pavlov. In his opinion, the state puts pressure on Mittal to sell quickly. ‘The plant is on the edge. It is supplied with 18,000 tons of gas for twenty-four hours, while we need 24,000 tons. Loom 1,700 does not operate and production is piling at its entrance, as no production comes out of it. Only one train brings in resources in the morning and carries out the output in the evening’, said Pavlov. According to the plan, the steel plant will be sold to the first candidate who shows USD 50 mln operative funds. There is also an urgent need of money for the workers salaries as the strikes keep on today. Monday Minister Dimitrov sad that the state has decided to leave the steel mill at artificial respiration in order to cease its draw out on behalf of the budget. The state-owned NEC and Bulgargaz will supply minimal quantities of electricity and gas.
Source: Standart (27.02.2008)

Kremikovtzi steel plant under siege Bulgaria's Kremikovtzi has been under siege for the past few weeks. It all started when railway carrier BDZ rapidly reduced the cargo transported to and from the steel plant due to a BGN 24 million debt. Late last month Bulgargas also cut gas supplies to the metallurgical giant and the National Electric Company is threatening to terminate power supplies for similar reasons. The company's creditors are also on the prowl. It may turn out that Kremikovtzi is not actually owned by Pramod Mittal. In 2006 the company floated a EUR 325 million bond issue, which was secured with equipment. In the case of default on coupon payments, the bondholders gain control over the pledged assets. Therefore the future of the plant depends to a great extent on creditors, as they have to approve a possible sales deal. The state initially defended the plant but then minister of economy and energy Petar Dimitrov warned that the government may interfere in the event of default on commitments. The Post-Privatisation Control Agency imposed a BGN 239.250 million fine on Finmetals (which is owned by Mittal's Global Steel) for failure to observe its privatisation contract. Minister of environment Djevdet Chakarov warned the plant will hardly be able to meet the requirements for an integrated pollution prevention and control permit. Kremikovtzi may have to be shut down and demolished, because pollution in the region is well above the admissible levels. Kremikovtzi's BGN 311 million environmental programme is part of the viability plan until the end of 2008. If the company fails to carry it out it will have to return a BGN 180 million state aid and the plant will be closed. The municipality also joined the attacks. According to its long-term plan, Kremikovtzi will become Sofia's City area with residential buildings, business centres, two highways and a metro connection. Given all this, the most likely outcome for the plant is its closure. That is supported by the financial indicators of the company, too. According to the non-consolidated report for the last quarter of 2007, Kremikovtzi's debts to creditors and suppliers exceed BGN 1.6 billion. It traditionally posts losses from core activities. The BGN 119 million profit for 2003 was due to foreign exchange gains. The improved current indicators are the result of rescheduling of debts. The company booked a BGN 35.9 million loss for 2007. However, all this theatre of the absurd may be just a way of exerting pressure for sale of the plant to a particular strategic investor. For nine years 'strategic investors' have been syphoning Kremikovtzi. The first was Valentin Zahariev, a Bulgarian businessman, who bought the steelmaker for USD 1, striking the deal of his life. For six years he managed to pocket about USD 200 million by selling Kremikovtzi products below their cost price to connected companies. In 2005 he got another USD 100 million from the sale of the plant to Pramod Mittal. According to the economy minister, the state has lost some EUR 300-400 million from Kremikovtzi under Mittal's management. Several potential buyers are rumoured now, including Ukrainian billionaire Kostyantin Zhevago and Pramod's brother Lakshmi Mittal.
Source: Pari (06.03.2008)

The Solution – a notified death in the autumn In the current situation the end is clear: a notified death in the beginning of the autumn. This is shown by the financial-economic results of the company. As of the Economy logic Kremikovtzi is into debt company, which has to go bankrupt. The disputable, indisputable and sums for private creditors owed by Kremikovtzi totaled BGN 847 mln four years ago according to experts. According to the unconsolidated report for the last quarter of 2007, the steelmaker has accumulated debts of BGN 1.6 bln. The state, however, is laying low as an eventual shut down of the plant would leave creditors empty handed and this would reflect on the financial stability of the economy. Disturbing for the capability of Kremikovtzi to pay its obligations is the fact that, except in 2000, the company has never reached any effectiveness from basic operations. It is not wondrous that the steel mill records losses from basic operations. For example, the profit in 2003 of BGN 119 mln was as a result of the so-called variations of the exchange rates, currently missing. The improved indices of the general liquidity are due to the transformation of the debts to NEC, Bulgargaz and National Social Security Institute into long-term debts. The spacing out defines the debts owed in more than an year as long-term liabilities. This reclassification leads to improvement of the current indices, although the company recorded a loss of BGN 35.9 mln in 2007.
Source: Pari (06.03.2008)

Kremikovtzi prepares an action plan for ending the crisis Kremikovtzi is considering an action plan for ending the crisis, was made clear after the latest meeting of the company Board of Directors. The plan foresees clients of the steelmaker to open accredited accounts to NEC, Bulgargaz and Bulgarian State Railways (BDZ) for realization of ready products. Currently Kremikovtzi is overrun by output that cannot be realized as BDZ refuses to transport shipments in and out the steel plant. Tons of resources are stockpiles at Port Bourgas and Port Lom. Kremikovtzi does not have enough funds to pay Bulgargaz as well, and this is why the plant operates at minimum capacity. It is essential that the entities on the matter find a solution as soon as possible, commented the Deputy Minister of Economy and Energy Nina Radeva. According to informed sources, the steelmaker has done business mainly with the UK-based Stemcor. The British company has both supplied resources to Kremikovtzi and realized the production of the mill. Stemcor has made the payments to NEC, Bulgargaz and BDZ. Often the payments have been delayed which led to the tension.
Source: Trud (07.03.2008)

NEC, BDZ and Bulgargaz renew kremikovtzi service The state monopoly Bulgargaz and NEC renew the supplies for Kremikovtzi and BDZ starts normal shipments of resources and output to the mill, said the press center of Confederation of Independent Trade Unions in Bulgaria (CITU). The reason is the signed agreement between Minister of Economy and Energy Petar dimitrov and Kremikovtzi representatives late last night. According to CITU information the supply resumption is in relation with the regular pay-off of the debts to the state-owned companies. CITU added that the agreement includes regular salary payments to the workers and employees. Until yesterday the salaries of half of the workers have been paid and the management of Kremikovtzi has engaged to pay the rest until the end of the week. This is why the planned strike is postponed.
Source: Dnevnik (13.03.2008)

Kremikovtzi to pay the state companies through special accounts There is an agreement between the management of Kremikovtzi JSC, the Ministry of Economy and Energy and the state companies, to which the metal works has debts, special bank accounts to be opened to serve the direct payments to National Electricity Company, Bulgargaz holding SPJSC and Bulgarian State Railways SPJSC. As a result of this agreement the state companies agreed to restore the supplies of raw materials for the steel factory. Two days after that credit accounts will be also opened, through which Kremikovtzi will pay until the 15th day its current debts for the delivered electric power, gas and the transport for the raw materials.
Source: mediapool.bg (14.03.2008)

Kremikovtzi went insolvent The Prosecution will seek the people responsible for the bad situation in Kremikovtzi. Yesterday the Minister of Economy and Energy sent the next alarm for frauds by the steelmaker management and Sofia Prosecution Office starts an inspection. There is information for abandonment, signing of unfavorable deals and crimes toward the creditors, shows the letter of Petra Dimitrov. The Work group checking the operations for 2006 and 2007 have reported to the Minister that Kremikovtzi has went insolvent. The Law of Commerce forces the board of directors to face the court and begin a procedure on insolvency. If they do not so it in 30 days, they face forfeit, and even imprisonment. This is the latest signal sent to the Prosecution by the Ministry recently. A few days ago the Minister alarmed the Ministry of Interior that the plant is not secured. The current frauds discovered are known since last year as the Ministry has a representative in the Board of Directors of the plant – Stoyan Pavlov, and the Minister – a deputy in the Consultative Board of Kremikovtzi – Nina Radeva.
Source: Sega (14.03.2008)

Turkish and Swiss examine Kremikovtzi Representatives of Erdemir and Duferco have been at the steelmaker for an inspection last week and have declared that they are “extremely interested” in the plant, said Vassil Yanachkov, head of the Metalitzi Federation at Confederation of Independent Trade Unions in Bulgaria. The Turkish and Swiss investors were interested in the steel plant back in 1999 during the privatization procedures, but they lost the battle with Valentin Zahariev, who privatized it for USD 1 through Daru Metal. Alexander Tomov is again chief of command in Kremikovtzi, said Lyudmil Pavlov, head of national Federation Metallurgy at Confederation of Labor – Podkrepa. According to him this was included into the journal of the meeting on February 4, when Pramod Mittal altered the management of the plant. Guntopali Dzhaganadam replaced Tomov as CEO. After the participants in the meeting signed, the corporate secretary Bozhko Bonev added by hand Tomov’s name as ‘Chief Executive Officer’, said Pavlov. The explanation to the present was that this is Mittal’s order. Lyudmil Pavlov added that the new Board of Director has not yet been registered.
Source: Standart (14.03.2008)

The Bulgarian environment ministry has issued an integrated pollution prevention and control permit to the Pleven district heating utility after the company brought on stream last year a gas-fired turbine. The document certifies that the company is able to meet its greenhouse emissions reduction target. The utility invested some 15 mln euro in the new facility which enabled a cut in heating prices to 63.46 levs/MWh with taxes. Despite the lower heating tariff, the utility said it is still owed 12 mln levs from non-paying customers. In turn, the company owes as much to state-controlled gas supplier Bulgargaz.
Source: Dnevnik (14.03.2008)

Govt to assist Kremikovtzi recovery as co is groomed for sale Bulgaria's economy ministry has accepted a role in whipping steel maker Kremikovtzi into shape as Pramod Mittal, the majority owner of the struggling company, prepares to shop the business to prospective buyers. Deputy economy minister Nina Radeva Thursday said Merrill Lynch, hired by Mittal to advise him on the Kremikovtzi situation, is likely to find by the end of March a strategic investor for the debt-throttled company. In line with the government's commitment, state-controlled utilities Bulgargaz and NEK have resumed supplies to the steel maker while railway carrier BDZ is again accepting Kremikovtzi shipments. The news was announced by the CITUB trade union but was later confirmed by the economy ministry. Kremikovtzi had settled the outstanding wages of half of its workforce by Wednesday and said it was committed to clearing up the remaining arrears by the end of the week. The news prompted the workers to relocated a protest rally planned for Friday in Sofia to the Kremikovtzi site. Ukrainian billionaire Konstantin Zhevago was the only strategic buyer to officially show interest in the Bulgarian steel mill. He even met with prime minister Sergei Stanishev in January. Sources told Dnevnik Mittal did not go for a deal with Zhevago due to the low price offer which was reportedly between 20 and 30 mln euro. Holders of bonds secured with Kremikovtzi assets confirmed that Zhevago is indeed the party with the strongest interest towards a possible sale as he seeks a processing capacity for his iron ore business.
Source: Dnevnik (14.03.2008)

Natural gas will become more expensive by about 13 percent starting April, announced the head of the State Commission for Energy and Water Regulation – Konstantin Shushulov. The hike of 32% demanded by Bulgargaz will not be happen. The Commission will not fulfill the demand and explained that Shushulov sadi that the chances for a 32% hike are zero. He added that the total price increse of natural gas will be calculated for the last three quarters in order to define the new increase of prices.
Source: Darik Radio (18.03.2008)

Creditors seek Kremikovtzi buyer Creditors of Kremikovtzi take the steelmaker in their hands. They will seek a strategic investor to manage it. If such is not found the will be declared insolvent, said Angelo Moskov, owner of QVT fund. The fund is among the four big bondholders of Kremikovtzi. The others are Moor Capital, York Capital and Mars Capital. An official letter sent in the end of March by the biggest creditors of the steelmaker demanded their money ahead of schedule. The letter was sent on March 28 by the guarantee of the emission Law Debenture Trust Corporation plc to the owner of the mill Global Steel Holding Ltd. as issuer of the emission and to Kremikovtzi as a guarantee. According to the letter the emission is to be payed off due to technical violations and debts worth millions to Bulgargaz, NEC and BDZ. Another reason is the concern that some of the securities of the bondholders may suffer after the Post-Privatization Agency won a court case against Kremikovtzi for BGN 239 mln. Most probably the matter concerns the blast-coke production and the continuous casting line, in pawn as guarantee of the loan. Because of the violations the bondholders demand the whole loan plus 1 percent interest which totals about EUR 328 mln. If it is not payd the bondholders may demand the guarantee on the loan – Pramod Mittal shares in the plant plus the main assets on the guarantee.The sale of assets is a step pointed out in the letter of Law Debenture. “We will cooperate with any candidate willing to work for the modernization of Kremikovtzi and reaching the ecological standards”, said Minister of Economy and Energy Petar Dimitrov.
Source: Standart (03.04.2008)

Bulgargaz Holding, the state-controlled gas distributor, is considering the launch of an engineering division for equipment supplies, repairs and expansion of its existing gas infrastructure, said the economy ministry. The board of the company recently authorised chief executive director Lyubomir Denchev to examine the opportunities for the creation of the new division and report back within three months. Bulgargaz subsidiary Bulgartransgas already has a division that handles investment, pre-investment control and equipment supplies.
Source: Dnevnik (09.04.2008)

Kovachki treated Pleven with interests for Easter as well. Heat Supply-Pleven SPJSC offered interest-free period until the end of April. The total debt of Pleven citizens is BGN 9.65 mln. The company hopes to gather at least BGN 4.4 mln in order to pay their debt to Bulgargaz. Due to the warmer weather the heat supply has started to be stopped by stages.
Source: Standart (14.04.2008)

EVN Bulgaria provides U.S. $ 6 million for the full rehabilitation of the transmission network in Plovdiv, which will reduce the losses on the route. The company plans by 2012 to be built a new plant for both generating electricity and heat, replace old substations and the acquisition of those owned by clients, announced Jorg Zolfelner, Chairman of the Board of "Heat-Plovdiv. For three months "Heat" has collected more than U.S. $ 2 million old debts. For the purchase of "Heat" in December 2007 Austrian company E VN heritage debt by 17 900 000 leva to the Bulgargas and 20 700 000 leva obligations to customers without written limitation on debtors. Three months later through share "Alliance correct customers' collection of private subscribers has increased by 9 percent, a business with 10 percent, said Zolfelner.
Source: Monitor (24.04.2008)

Gazprom and Bulgargaz, the Russian and Bulgarian state-controlled gas distributors, will sign an agreement for the creation of a company to design the section of the trans-Black Sea South Stream gas pipeline that will cross Bulgarian territory, Gazprom deputy chairman Alexander Medvedev said. The countries signed in January 2008 an intergovernmental agreement on the project, splitting evenly the project company equity and opting for a Bulgarian domicile.
Source: Dnevnik (25.04.2008)

Kremikovtsi Bankruptcy Demanded Six private companies have demanded a bankruptcy declaration of the Kremikovtsi steel works. Sofia City Court has accepted the claim, it is to appoint two receivers at Kremikovtsi. These are Anna Milenkova and Alexander Georgiev. Kremikovtsi owner Indian tycoon Pramod Mittal cannot sign any deals without their permission. The bankruptcy case will be heard in court on June 17. Kremikovtsi steel works has accumulated debts of over 1.5 billion levs (1euro=1.95levs) mainly to state-owned National Electrical Company (NEC) and Bulgargaz.
Source: Standart (07.05.2008)

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)

Domestic gas prices may increase 15% to 20% from July 1 if international oil prices remain unchanged over the next 20 days, said sources close to Bulgarian state-controlled gas supplier Bulgargaz. Oil topped $126 per barrel last week while the prices at which Bulgargaz suplies local consumers are calculated at a price of $100-$105. The tariff hike proposal will be submitted for review by the opwer regulator by june 12 but it is difficult to say at this point the extact figure that will be proposed as this will unfold over the next 20-25 days, said the company. Domestic gas priced were revised upwards by 13.25% in April this year, an increase that was fairly low compared to the 32% requested by Bulgargaz.
Source: Dnevnik (12.05.2008)

Moody's downgrades Kremikovtzi Moody's Investors Service said it has downgraded the corporate family rating of Kremikovtzi AD, the embattled Bulgarian steel maker, to Ca from Caa3 and the rating on its 325 mln euro senior secured guaranteed notes raised at Bulgaria Steel Finance BV to Ca/LGD 4(53) from Caa3 / LGD 4(53). The outlook is stable. The rating action reflects Kremikovtzi's failure to make a timely payment of interest under its 325 mln euro notes. The assigned LGD rates take into account the remaining uncertainty with respect to the resolution of the situation at the company and a timely implementation of any remedial actions that the management and the principal shareholder may consider, including a potential disposal of the stake by the main shareholder, if providing sufficient cash to repay liabilities, said the rating agency. Moody's noted, that the indentures include a change of control prepayment option. As previously stated, Moody's considers the value of the security (including pledge of accounts, assets and shares) to be insufficient to cover the principal amount raised under the notes.
Source: Dnevnik (14.05.2008)

Zhevago Wants to Rent Kremikovtsi Ukrainian businessman Kostyantin Zhevago does not want to buy Kremikovtsi, but to take the plant on lease," Lyudmil Panov, Chairman of the National Federation "Metallurgy" with the Podkrepa Labor Confederation said yesterday. Mr. Zhevago has close ties with Vorskla Steel Bulgaria Company, representatives of which are expected to present a draft of the lease contract to Bulgaria's Minister of Economy and Energy Petar Dimitrov. If the contract is ratified, Vorskla Steel will become an operator of Kremikovtsi. The lease agreement will be for at least one year, for which period the company takes a commitment to invest nineteen million dollars in the plant. The money will ensure the import of raw materials, necessary for the work of the plant. It will also be used to repay the company's debts, especially the ones to the big state-owned companies, and for payment of the workers' delayed salaries "This is the only way to save Kremikovtsi from bankrupt, said Dr. Konstantin Trenchev, Chairman of the Podkrepa Labor Confederation. In addition, representatives of Vorskla Steel promise to deposit 30 million US dollars at Bulgaria's Ministry of Environment and Waters as a warranty for the willingness of Kremikovtsi management to keep on implementing the plant's environment protection and pollution reduction program. "Kremikovtsi has not exhausted its potential and, given a good management, it can turn into a European steelworks, the workers at which are paid European salaries," Dr. Trenchev said. Last Friday, representatives of the Podkrepa Labor Confederation and the Confederation of the Independent Trade Unions in Bulgaria signed an agreement with representatives of Vorskla Steel, under which the company should invest 100 million US dollars in Kremikovtsi steelworks. Zhevago's men have also promised to pay off the worker's delayed salaries by Friday, as well as their food allowances, the payment of which ceased last November. The debts of Kremikovtsi amount to over 1.2 billion levs, most of them are accumulated to big state-owned companies like the National Electric Company, the national railway carrier BDZ and Bulgargaz. Kremikovtsi's debt to the latter grosses 100 million levs. To operate normally, the steel-maker needs at least eighty million levs a month.
Source: Standart (14.05.2008)

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)

The Bulgarian economy ministry said Bulgargaz Holding, the Bulgarian state-controlled gas distributor, and the Azerbaijani state gas and oil company will begin negotiations on the delivery of natural gas for the Nabucco pipeline. According to the press release, the delivery of 1 bln cu m to Bulgaria and the region will be negotiated. No one at Bulgargaz could be reached for comment Sun. The European Commission has allowed OMV, Bulgargaz, Transgaz, Botas, MOL and RWE - the company in charge of the Nabucco project, to utilise 50% of the pipeline capacity. Late last week, project company Nabucco Int'l said the cost of the facility may have to be revised upwards by 50% due to higher resource prices.
Source: Dnevnik (02.06.2008)

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)

Bulgargaz, the state-controlled gas distributor, has asked the local power regulator to approve an 81.20 lev increase in the domestic price of natural gas to 494.67 levs per 1,000 cu m without taxes. The State Energy and Water Regulatory Commission will review the proposed adjustment which is otherwise scheduled to take effect on July 1. The distributor blamed the need for a tariff adjustment to an increase in the international price of gasoil and fuel oil with 1% and 3% sulphur content, commodities that influence the movement in the domestic tariff.
Source: Dnevnik (17.06.2008)

South Stream to Begin Gas Transfer as of 2013 "Natural gas will start flowing through South Stream pipeline no later than 2013-2014, which is when the whole project will be thoroughly implemented," is the prognosis of the Deputy Chief of Gazprom's International Business Department, Sergei Korovin, who partook yesterday in a video-bridge discussion with Bulgarian media representatives. "We have just begun drawing up the technical and economic feasibility of the project as well as the possible routes the pipeline will take as soon as it reaches Bulgaria. This stage will be complete by 2009, that is why no specific route has yet been decided on," Korovin said. One possibility is the pipeline extends to Austria; another is to stretch all the way down to Italy. Gazprom and Bulgargaz have already assembled working groups to arrange the setting up of a joint venture, which will orchestrate the project. "It is too early to draw any figures or make preliminary calculations about what revenues will Bulgaria get from transit fees," Korovin said, thus, giving his comment on the prognoses by the Bulgarian Ministry of Economy that US$300 million from transit fees will enter the state budget per annum. Korovin also stated, he saw no problem with the fact that the two governments had not yet ratified the intergovernmental agreement on the project. The agreement stipulates a fifty-fifty ownership of the joint venture and according to Korovin, funding and construction services will be provided later on.
Source: Standart (24.06.2008)

Full Power to Bulgaria's Energy Sector After Bulgaria's President convened the Consultative Council on National Security as regards energy policy, Bulgaria's top politicians gave full power to all energy projects. Their goal is to make Bulgaria the Balkans' energy giant. "I am much pleased with the debate on the country's energy security. The prevailing opinion was that the projects South Stream, Nabucco and Bourgas-Alexandroupolis pipeline are of strategic importance for Bulgaria," President Georgi Parvanov said appearing from the four-hour sitting. The President said that there were no risks of an energy crisis in Bulgaria and that in the next few years the country would become an energy center in the region. Economy Minister Petar Dimitrov said there was no risk of power cuts even if the winter comes harsh. President Parvanov also praised our diplomats saying that had been their most successful mission in the energy sector so far. He also said that Bulgaria's energy policy would be an inseparable part of the EU energy strategy and added that Nabucco was a priority project. President Georgi Parvanov, PM Sergey Stanishev, Director of the State Agency for National Security, Petko Sertov, ministers and MPs, registered a delay in the realization of the NPP Belene and South Stream energy projects. As regards the construction of new capacities on the site of NPP Kozloduy, President Parvanov gave the floor to PM Stanishev because, he said, the Prime Minister was better acquainted with the issue. The two demonstrated unanimity and accord of opinions. "There should not be party struggle and political intrigues when it comes to the energy security of the country," Mr. Stanishev said. He said additional capacities could be built on the site of NPP Kozloduy. To his words, Bulgaria will assume a leading role in the transit of natural gas with a total of ten or twelve percent of the natural gas flow to the EU passing through its territory. President Parvanov also said he would inform the Citizens for European Development of Bulgaria Movement (GERB) and the rest of the political parties that are not represented in Plenary Hall about the recent energy projects, so that the projects could receive maximum social support. Minister of Economy and Energy Petar Dimitrov said that the South Stream project would be ratified by the Government tomorrow. He added that big investors were interested in the construction of the extra capacities of NPP Kozloduy. "A seventh reactor of NPP Kozloduy will come quite good, but this will mean that we will have to give up our claims for the reopening of reactors 3 and 4," the minister said.
Source: Standart (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)

The economy ministry said it has picked Deloitte Bulgaria to advise the creation of a holding structure for major state-owned power assets. The two other candidates that were eyeing the contract were Bulbrokers Consulting and Evroodit BX. The latter company was barred from the second phase of the procedure - the opening of the financial proposals, due to omissions and non-compliance with requirements in the public procurement procedure.
Source: Dnevnik (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)

Kremikovtzi will operate with materials of the client Kremikovtzi will produce with materials of ArcelorMittal, according to the plan of the Luxembourgh-based company of the bigger brother of the current owner Pramod – Lakshmi Mittal. After the declarement of bankruptcy, ArcelorMittal plans to supply raw materials, to trade in the output and to control the spending of its invested money. A team of experts of Lakshmi Mittal would provide expert and technical aid for the management of the steelmaker. The management would be undertaken by the court and assignees of bankruptcy, as planned during insolvency procedures, said Volker Schwich, vice president projects for Central and Eastern Europe at ArcelorMittal.
Source: Standart (04.07.2008)

The chief executive officer of Bulgargaz Holding Lyubomir Denchev and Jean-Francois Sireli, president and CEO of the French company Gaz de France signed on Thursday a Memorandum for strategic partnership for the development of the market and securing the supply in the field of natural gas. The signing of the memorandum was expected more than a year ago when the initial talks began between the two gas companies. The talks became more frequent in February 2008 after the French company had joined the South flow in which Bulgargaz also participates.
Source: mediapool.bg (04.07.2008)

Bulgargaz cuts supplies for Kremikovtzi Bulgargaz reduced the amount of natural gas supplies to Bulgaria's mettalurgical plant Kremikovtzi. The state-owned gas transmission company decided on this move following a steady rise in Kremikovtzi's debts, Bulgargaz executive director Dimitar Gogov said. ArcelorMittal has started negotiations with NEC, Bulargaz and BDZ. ‘I have met with the executives of the three companies because the supply should not be cut during the bankruptcy procedure. The situation at Kremikovtzi is really critical, its financial condition is very close to bankruptcy’, Volker Schwich, vice president projects for Central and Eastern Europe at ArcelorMittal, said. According to him the management of Kremikovtzi cannot manage it in the state of overindebtedness. This is why ArcelorMittal now is only negotiating with the Government, which is a sharehodler in the steelmaker, and with the big creditors, which are also state companies. ‘Thanks to the due diligence we have an idea of the plants’s debts, but we cannot comment on them until a court decision comes’, Schwich said.
Source: Pari (04.07.2008)

Bulgarian MPs voted on the list of companies prohibited from privatisation, which includes 66 healthcare institutions, as well as companies with over 50% state participation. The list includes NPP Kozloduy, NEK, Bulgargaz, the National Sports Base, etc. Parliament also adopted the requirement that following the privatisation of a healthcare institution, it still has to offer the minimum range of services described in the National Health Card. Thus, the privatised institution will have to offer medical services adapted to the needs of the population in the respective region.
Source: Pari (10.07.2008)

18 members of the Bulgargaz holding Board of Directors have been given salaries for total of BGN 666 thous last year, which is BGN 55 thous per month. This was presented in the financial report of the gas holding and its 3 subsidiaries. Among the members of the management boards of the four companies are deputy ministers, counsellors of the PM and the Minister of Economy, even municipal councillors. 2007 is the first whole year of the newly-formed Bulgargaz holding SPJSC.
Source: 24 chasa (21.07.2008)

Cheaper gas from South Stream Gas pipeline South Stream would provide cheaper gas and independence from the supply from other countries for the whole EU, said Minister of Economy and energy dyring a parliament discussion about the pipeline. He pointed out that it would supply gas from Russia for Italy and would reach Bulgaria from the bed of the Black Sea. Bulgaria may earn between USD 250 and 400 mln per year from transit charges, according to data fro the economic Ministry. The whole construction work on the pipeline is expected to be between USD 7 and 10 bln.
Source: Novinar (24.07.2008)

Bulgargaz, the state-controlled natural gas distributor, has warned it will turn the tap on supplies to the heating utilities in Sofia, Burgas, Vratsa, Pleven and Shumen unless they settle their outstanding bills under the timetable set by the gas distributor. The gas distributor refused to say how much it is owed by the non-paying utilities. It warned that the current situation may disrupt gas supplies during the upcoming winter period. On Monday, Petko Milevski, executive director of Toplofikacia Sofia, said the company's current debt to Bulgargaz was 80 mln levs while its total debt was 116 mln. In September 2007, Bulgargaz and Toplofikacia Sofia rescheduled the payment of 150 mln levs over a six-year period. The Burgas utility is understood to have 13 mln levs in outstanding payments to Bulgargaz. The office of local businessman Hristo Kovachki, owner of the heating utilities in Vratsa, Burgas and Pleven said the companies are ready to negotiate new payment timetables. Both the utilities and Bulgargaz place the responsibility for the pricing environment and the indebtedness of the sector on the power regulator. The regulator has cut sharply all gas tariff hikes proposed by Bulgargaz since late 2007.
Source: Dnevnik (24.07.2008)

9 banks keen to advise Burgas-Alexandroupolis pipeline project Nine banks have handed in their credentials to advise the Burgas-Alexandroupolis oil pipeline project, said Burgas-Alexandroupolis BG, the outfit in charge of Bulgaria's share of the venture. The advisory contract will be contested by France's Calyon, Societe Generale, BNP Paribas, ING, Project Finance Solutions, RBS, Lazard, Citi Group and Gazprombank. The selected consultant will use the technical and economic feasibility studies as a baseline to draw up the documents needed to apply for loan financing and research the market interest towards the project, said Stefan Gunchev from the regional development ministry. The official said the advisor is expected to be picked in August. Germany's ILF should update the feasibility study for the project by the end of 2008. The facility will cost 1.5 bln euro, judging by statements from Nikolai Seryogin, member of the supervisory board of the international project company in charge of the pipeline. The figure is significantly higher than the initial price tag that was seen at around 800 mln euro. The shareholders in the project company will contribute 30% of the necessary financing, securing the remainder from external sources. Russia's Transneft, Rosneft and Gazpromneft control a combined 51% in the project company. Bulgaria and Greece each have 24%. Bulgargaz and Technoexportstroy, the co-owners of Burgas-Alexandroupolis BG, will have to raise 110 mln euro in funding. The Russian media have reported that problems with the taking of private land for the project will cause the pipeline to be rerouted on Bulgarian territory. The Bulgarian side had previously reported no difficulties with the expropriation of private land.
Source: Dnevnik (29.07.2008)

South Stream Gas Pipeline Project to Require USA 20 B The project for the construction of the gas pipeline "South Stream" is going to require investments of over USD 20 B, instead of USD 10 M as it was previously calculated from estimates in the beginning of 2008. This was announced by the Russian Energy Minister Sergey Shmatko cited by Russian press publications. According to experts, this double increase of the necessary investment amount was possibly going to add additional obstacles for the realization of the gas pipeline project. They have stated that the competitor "Nabucco" project was going to be with 30% to 40% cheaper, which would make it more feasible.
Source: Darik Radio (31.07.2008)

Bulgargaz says may cut gas supplies to struggling steel maker Kremikovtzi Bulgargaz, the state-controlled gas distributor, has warned Kremikovtzi it will discontinue supplies August 1 unless the debt-ridden steel maker pays its 7.5 mln lev July gas bill, said Lyudmil Pavlova, leader of the Podkrepa trade union at the plant. His statement disproved earlier reports that Bulgargaz had already stopped piping gas to the steel maker on Wednesday morning. In related news, 22 operative managers and directors at the steel plant released a declaration addressed to the prime minister and the ministers of economy and transport., voicing their outrage at the genocide policy towards the company pursued by Bulgargaz and state railways BDZ. The declaration further calls out the government on its failure to take a clear stand on the plans for the company's future. The press office of the steel maker said the management was aware of the declaration but did not say if they support it or not. Economy minister Petar Dimitrov Wednesday reiterated that he will not allow a shutdown of the plant. Arcelor Mittal, the Indian steel maker in the mix of potential buyers, has broken off its tolling agreement with Kremikovtzi (after failing to square positions with the government) but yesterday reaffirmed its interest in the acquisition of the company.
Source: Dnevnik (31.07.2008)

Bulgaria Energy Minister: Kremikovtsi Will Continue to Receive Gas Supply The gas supply for the steel mill "Kremikovtsi" would not be lowered under the ctiritcal minimum as promised by Bulgarian Energy and Economy Minister Petar Dimitrov Thursday. Wednesday the company "Bulgargaz" warned the steel mill that if they did not receive the amount of BGN 7,5 M from Kremikovtsi by 4:00 pm Thursday, they would terminate the gas supply to the mill. The above amount is the mill's dept towards "Bulgargaz" for the month of July. At the moment, the gas supply company is still waiting to receive an offer from "Kremikovtsi's" management proposing a solution of the problem. From "Bulgaragaz" have been firm that they do not wish to stop the gas supply to the mill since "Kremikovtsi" was their biggest customer. At the same time, the trade unions from "Kremikovtsi" have informed that there was no payment to "Bulgargaz" yet, but they believed that the gas company was serious enough to keep the gas supply at the critical minimum and to negotiate installment payments. Liyudmil Pavlov, leader of the "Podkrepa" trade union at the mill further explained before Darik radio that "Kremikovtsi's" management was still awaiting a meeting with Prime Minister Sergey Stanishev. It is expected that at the meeting Stanishev would announce the State's decision regarding the mill's future. The trade unions at the mill have stated once again that they supported declaring the mill insolvent and executing a rehabilitation plan, offered so far only by the Ukrainian company "Vorskla Steel" owned by Konstantin Zhevago. The Indian businessman Lakshmi Mittal and the Ukrainian Konstantin Zhevago have been competing for months with offers to purchase the steel mill. The insolvency claim has been filed by one of Zhevago's companies along with several other businesses while the Sofia District Court announced Tuesday that they would make the decision about the insolvency of Bulgaria's infamous steel mill in 14 days.
Source: Darik Radio (01.08.2008)

Kremikovtzi gas supplies safe Bulgargaz, the Bulgarian state-controlled gas distributor, said on Thursday it will hold off from cutting gas supplies to ailing steel maker Kremikovtzi after the country's economy minister publicly opposed the move. A day earlier, trade unionists said the gas distributor was preparing to stop gas supplies from Aug 1. Bulgargaz will continue to pump only the technological minimum until the appointed administrators take charge of the company. The steel plant owes 38 mln levs in unpaid bills to Bulgargaz.
Source: Dnevnik (01.08.2008)

Trade was weak on the last day of the week, with the blue-chip Sofix once again falling below 1,000 points. The index closed at 1,002.95 points, down by 1.12%. The broader BG40 of the most traded stocks dipped by 2.24% to 247.33 points. BGREIT of real estate investment trusts fell by 0.62% to 97.84 points, while BGTR30 of the best performers in total return fell by 1.33% to 656.64 points. Shares of Lomsko Pivo lost 8.33% to BGN 2.74. Shares of Real Estate Investment Fund rose by 1.93% to BGN 1.53%.
Source: Pari (04.08.2008)

Kremikovtzi could be shut down by stages In case the Court does not make a decision whether Kremikovtzi would be declared insolvent, there is a high probability that steelmaker’s operations are shut down by stages. A meeting is expected to be called in the next days so that it is decided which operations would be ceased first so that it would not lead to emergencies. Because of the cut supply by Bulgargaz, the gas is insufficient for production operations and is enough only to keep the furnaces warm. Kremikovtzi can continue its existance only in case fresh finances and a new investor enter the troubled steel plant. However, this could not happen before the court comes out with a decision on the insolvency case. It is expected to be made within a week.
Source: Novinar (05.08.2008)

Bulgaria's Economy Minister: Kremikovtsi's Fate Is up to the State "Choosing the future owner of Kremikovtsi Steelworks is entirely up to the Bulgarian state," Bulgaria's Minister Economy and Energy Petar Dimitrov said with the Bulgarian National Television (BNT). "The reason is that the Bulgarian state is the smelter's largest creditor. Kremikovtsi owes the state 900 million levs," he explained. The amount the treasury could claim back is 400 million levs. This represents the debt it remitted prior to Kremikovtsi's privatization in return to a commitment for heavy investing as stipulated in the vitality plan, which, though, no one has ever even cared to follow. The European Commission defines this very 400 million levs as "illegal state aid" which must reenter the Kremikovtsi's bank accounts should the vitality plan remain unimplemented. Thus, when insolvency is announced by the court, which is expected to happen within one week, the state will automatically top the list of creditors. The state aid plus the interests amounts to 700 million levs. Apart from these Kremikovtsi is in debt to Bulgargaz, the State Railways and the National Electric Company as well as to the State Fund for Reconstruction and Development and the total sum of the smelter's liabilities reaches up to about 900 million levs, according to Minister Dimitrov. "The chief creditor is undoubtedly the Bulgarian state. This is the reason why the candidate buyers take no actions before making sure they have the support of the state," Dimitrov said. He was reportedly astonished with the managers and the trade unions that attempted to indirectly exert pressure on the state to take side and single out the favourite candidate buyer. "The state will not be subdued, besides the bidders should compete for the steel works," the Minister said.
Source: Standart (05.08.2008)

Kremikovtzi debt to Bulgarian govt may reach 900 mln levs The money that debt-ridden steel maker Kremikovtzi owes to the Bulgarian government may top 900 mln levs, elevating the state to the top of the creditors' list, economy minister Petar Dimitrov said on Monday. The steel maker owes some 200 mln levs in unpaid bills to gas distributor Bulgargaz, state railway operator BDZ and electric utility NEK, said Dimitrov. In addition, the government may be in position to make a 400 mln lev claim against the plant. The amount was made available to the company prior to its privatisation. The management's subsequent failure to execute a viability program renders the lifeline inadmissible under EU rules. The amount now stands at around 700 mln levs with interest, said Dimitrov. With claims of around 900 mln levs in total, the government will also have a leading role in the selection of a new owner for the struggling steel maker, said the government official. The total liabilities of the company are estimated at around 2.5 bln levs. The economy ministry has reiterated that a court ruling on an insolvency case against Kremikovtzi should be handed down within a week. That will be followed by the appointment of interim receivers and the drawing up of the list of creditors. The meeting of the creditors will likely take place in September or early October, said Dimitrov. 'The government is undoubtedly the main creditor,' said the economy minister. 'To my surprise both the management and the receivers are exerting indirect pressure on the government to take sides.' After Indian steel maker Arcelor Mittal confirmed last week its interest in Kremikovtzi, the bonds secured with assets of the plant ticked up on Monday.
Source: Dnevnik (05.08.2008)

Kremikovtsi Bankrupt since 2006 Kremikovtsi has been insolvent since December 31, 2005, ruled Sofia City Court yesterday. There are plenty of indicators pointing out the progressive worsening of the steel works' economic condition. The liabilities increase every year, the enterprise's profitability decreases and by December 31, 2007 the booked account payables amounted to BGN 1,629,709,000. All these facts tell of the actions taken by the management of the debtor enterprise that for sure do not lead to successful development of the enterprise, the court ruling reads. Ana Milenkova has been appointed acting assignee in bankruptcy. She was nominated by Rua Invest &Trading connected to Kostyantin Zhevago. The company was the first to demand declaration of bankruptcy for Kremikovtsi steel works. The creditors' meeting is fixed for September 26th, 2008. The bondholders from London, lay one of the largest claims at the cost of EUR 325 million. The Bulgaria state will probably be one of Kremikovtsi's creditors. When Kremikovtsi was privatized the state cancelled BGN 400 million of debts to the steel works. The European Commission declared them for a wrongful state aid and that Kremikovtsi should pay the aid back if it did not implement the viability plans. The total state loan to Kremikovtsi, including the steel mill's debts to Bulgargas, the National Electrical Company and the state Railways amounts to BGN 900 million. We are content with the ruling of Sofia City Court to declare Kremikovtsi bankrupt, reported from Bulgaria's Ministry of Energy and Economy. They believe the country ruling will give opportunity to Kremikovtsi to quickly restore its activity so that the productivity and the jobs are preserved. We will comment on the ruling after getting familiar wit it, said some from Kremikovtsi.
Source: Standart (07.08.2008)

Since aqcuiring 100 percent of the assets of Heat Supply-Plovdiv SPJSC in December 2007, EVN Bulgaria has decreased the operative debt to Bulgargaz holding SPJS by BGN 3.4 mln. The debt to Bulgargaz reached BGN 17.9 mln in the end of 2007. Meanwhile the debt was reduced to BGN 14.5 mln. The most important move in this direction was the implication of the ‘Alliance with the correct customer’ project, which led to the collection of BGN 2.1 mln for covering some of the liabilities.
Source: Monitor (08.08.2008)

Bulgaria's Supreme Administrative Procuracy and the National Security State Agency (NSSA) have been investigating this past month the procedures for the collection of transit fees paid by Russian gas monopoly Gazprom. The check aims to establish the legality of the transit fees for gas pumped to Greece and Turkey pocketed by Bulgargaz trading unit instead of Bulgartransgaz and if the scheme is prone to abuse. Both of the cited companies are subsidiaries of state-controlled gas distributor Bulgargaz Holding. The probe was launched in response to a request from Bulgartransgaz executive director Angel Semerdjiev that the authorities ascertain the energy legislation and the gas directive were being upheld in the way that the transit fees are collected. The prosecution authorities confirmed that such an investigation was in progress. A NSSA spokesperson said the agency was not involved in the case in any capacity.
Source: Dnevnik (11.08.2008)

The Bulgarian energy ministry will decide whether Bulgargaz or Bultransgaz will collect the fees for the transiting of Russian natural gas through the country's territory, the chief of the nation's power regulator told Dnevnik on Tuesday. The State Energy and Water Regulatory Commission (SEWRC) has sent a letter to the energy ministry, insisting that the fees are pocketed by the transmission unit and that the trader Bulgargaz would not be a loss-maker at the prices that entered into force on July 1 when natural gas appreciated by 5% instead of the 19.6% proposed by Bulgargaz, said SEWRC chairman Konstantin Shushulov.
Source: Dnevnik (13.08.2008)

A working group set up by the Bulgarian economy ministry to investigate the handling of gas transit fees by Bulgargaz and Bulgartransgaz has recommended a regulatory penalty for the two companies for breaches of their respective licences, sources from the working group told Dnevnik. The check was ordered by energy minister Petar Dimitrov after Bulgartransgaz executive director Angel Semerdjiev asked the prosecution authorities to investigate if the agreement between trader company Bulgargaz and the transmission company on the collection and distribution of fees paid by Russia's Gazprom for the transiting of its gas via Bulgarian territory violated the energy law. The agreement puts the trader in charge of the collection of the fees instead of the transmission company as is required by the gas directive.
Source: Dnevnik (18.08.2008)

Zhevago team prepares to take over Kremikovtzi's operative management Vorskla Steel, controlled by Ukrainian billionaire Konstaitn Zhevago, is preparing to join the operative management of debt-ridden Bulgarian steel maker Kremikovtzi, said Viktor Demyanyuk, Zhevago's reprehensive in Bulgaria. 'A meeting is scheduled on Monday with executives from [gas supplier] Bulgargaz, [power utility] NEK and [railway carrier] BDZ to negotiate a repayment scheme [for Kremikovtzi's debts]. Consultants will be hired immediately in connection with the environmental program that will have to be implemented,' said Demyanyuk. In July, Vorskla Steel signed a tolling agreement with Kremikovtzi. Some of the managers of the Bulgarian company later said the agreement was signed under coercion and notified the prosecution authorities. Although the agreement was declared null and void by the managers that opposed it, Vorskla continued to supply input materials to Kremikovtzi with the management of the Bulgarian steel maker constantly delaying the recognition of the arrangement by suggesting a series of annexes. Last Friday, Demyanyuk said the plant will produce 60,000 to 70,000 tons of steel per month in the first 60 days. An upgrade that will be launched immediately will later increase the output to 95,000-105,000 tons per month. Kremikovtzi receiver Ana Milenkova said she has approved for implementation neither the tolling agreement with Vorskla Steel nor that with India's Arcelor Mittal 'There are two contracts and both of them should be honored,' she said.
Source: Dnevnik (18.08.2008)

Kremikovtsi Steelworks to Resume Production on Credit Kremikovtsi Steelworks will resume its manufacturing process thanks to a loan in gas. The company's temporary assignee in bankruptcy Anna Milenkova and a representative of Kostyantin Zhevago - Viktor Demyanuk held talks about recommencing the gas supply for Kremikovtsi with Bulgargaz yesterday. Zhevago's reps said they would pay Kremikovtsi's current bills, but not past ones, which size up to tens of millions of levs (1 euro = 1.95 lev). For the sake of giving a vague idea of the total amount of Kremikovtsi's liabilities, it is enough to only mention the figure of the gas bill for July alone: 7,5 million levs. And the plant was not even working! The anticipated decision of the state-owned Bulgargaz whether or not the supply of gas for Kremikovtsi will resume, should be announced today. Up to now, the gas giant would furnish so much as 20 thousand cubic metres of gas to keep the smelters hot. We need 25-30 cubic metres to restart production, Kremikovtsi trade unionists announced. Negotiations the National Electrical Company (NEC) and the Bulgarian State Railway Company (BDZ) over the possibility of resumption of the raw materials supply to Kremikovtsi as well as the revision of the payment conditions under certain contracts are being held concurrently.
Source: Standart (21.08.2008)

Kremikovtzi restores operation within days Within a few days the normal gas supply to Kremikovtzi would be restored. The assignee on bankruptcy Anna Milenkova, the management of Bulgargaz and of the Ukraine-based Vorskla Steel have negotiated that the gas company raise the supply to the plant to 30,000 cub. m. per hour, said the head of Podkrepa at the plant Lyudmil Pavlov. Currently Bulgargaz supplies 20,000 cub.m./h to Kremikovtzi due to unpaid debts. The way to pay the old debts of the steelmaker to the gas monopoly have to be decided today. The operative payments would be made normally and within the deadlines, the company said. As to date, the debts to Bulgargaz are about BGN 40 mln. So far the quantity was enough only to keep the furnaces warm, but not enough for normal operations leading to profit, representatives of the steelmaker commented. Currently, a list of the creditors, among which the State is the biggest with BGN 900 mln, is being prepared. On September 26 a meeting between the creditors would take place in order to elect a permanent asignee and an operator company, which would manage the steel mill. The chosen company would be able to manage the raw materials and to allocate the output earnings to pay the debts to the creditors, the wages of the personnel and for investmenmts in the ecology programme of the plant.
Source: Novinar (25.08.2008)

Sopot and Hisar will be supplied with gas by the end of next year by Black Sea Technological Company JSC. The Varna-based company expects to receive an official license for both municipalities after the meeting of SCEWR on Monday. The gasification of the two municipalities will be in two stages. In the first 5 years the supply will be with tanks, which will deliver gas to the terminal where the blue fuel will departs to consumers. In the second stage the gas network will be connected with the network of Bulgargaz in the area between the Graf Ignatievo and Stryama. The total investment for the two municipalities will exceed EUR 10 million, but the company assesses the region as very promising and fast-developing.
Source: Darik Radio (27.08.2008)

Kremikovtzi Gas Supply Is at Full Capacity Starting Wednesday, the steel mill "Kremikovtzi" is receiving the full volume of necessary natural gas - 30,000 cubic meters per hour, as confirmed by the trade unions at the mill. The company of the Ukrainian businessman Konstantin Zhevago, "Vorskla Steel", which has a contract to manufacture steel with own materials, has wired BGN 3 M to "Bulgargaz", which cover part of the mill's dept for the use of natural gas. In the next two months "Vorskla Steel" intends to fully reinstate the "Kremikovtzi" production capacity and to reach 60,000 tons of production, which, according to plans, would later go up to 100,000 tons. "Bulgargaz", however, have not yet confirmed the information about the BGN 3 M transfer. They have stated that by the end of the week they would issue an official press release regarding their agreement with "Kremikovtzi" and "Vorskla Steel." Until now the gas supply to the mill was reduced down to 20,000 cubic meters per hour due the mill's unpaid depts.
Source: Darik Radio (27.08.2008)

Kremikovtzi Gas Supply Is at Full Capacity Starting Wednesday, the steel mill "Kremikovtzi" is receiving the full volume of necessary natural gas - 30,000 cubic meters per hour, as confirmed by the trade unions at the mill. The company of the Ukrainian businessman Konstantin Zhevago, "Vorskla Steel", which has a contract to manufacture steel with own materials, has wired BGN 3 M to "Bulgargaz", which cover part of the mill's dept for the use of natural gas. In the next two months "Vorskla Steel" intends to fully reinstate the "Kremikovtzi" production capacity and to reach 60,000 tons of production, which, according to plans, would later go up to 100,000 tons. "Bulgargaz", however, have not yet confirmed the information about the BGN 3 M transfer. They have stated that by the end of the week they would issue an official press release regarding their agreement with "Kremikovtzi" and "Vorskla Steel." Until now the gas supply to the mill was reduced down to 20,000 cubic meters per hour due the mill's unpaid depts.
Source: Darik Radio (28.08.2008)

The natural gas supply for the heating utilities in Sofia, Pleven, Bourgas and Vratsa is going to be gradually reduced beginning September 1, 2008 due to the above companies' unpaid debts, according to the company supplier "Bulgargaz." The supplier data shows that the heating utilities in those four cities now owe a total of over BGN 235 M. "Bulgargaz" further reminds that a month ago they have informed in writing their debtors as well as the governors and the mayors of the four cities that a reduction in the natural gas supply was forthcoming. Despite that, the heating utilities have not undertaken any measures to repay the owed amounts. The heating utilities such as those in Varna and Rousse, who have paid their bills regularly would not encounter any problems with the supply of natural gas, the supplier further confirmed.
Source: Darik Radio (29.08.2008)

South Stream Route to Be Laid out in Autumn "The final layout research for South Stream pipeline will begin this autumn," deputy head of the Environment department of the Peter Gaz-Moscow said during a videoconference yesterday. A comprehensive program for environmental safety of the pipeline bed will be developed simultaneously. During both the South Stream research and construction works, the contractors will be able to draw experience from the already implemented similar project called Blue Stream, which runs between Russia and Turkey. During the videoconference, the Chairman of the Bulgarian party Green Bulgaria, Aleksander Karakachanov proposed the setting up of a fund for improvement of the environmental situation along the Black Sea coast. Karakachanov added his party would support the South Stream project as long as it is implemented according to all environmental requirements.
Source: Standart (29.08.2008)

State-controlled gas distributor Bulgargaz has requested a 30% price increase from October 1. On Monday, the company is due to power down the gas supplies to the district heating companies in Sofia, Burgas, Pleven and Vratsa over unpaid bills. According to the heating utilities, the pricing policy of the Bulgarian power regulator is to blame for the poor financial state of the companies in the sector. The regulator has approved a series of gas tariff hikes while the price of the heating is adjusted only once a year. The power regulator said t was not likely that it would approve the requested 30% tariff hike unless Bulgargaz argues a very convincing case.
Source: Dnevnik (01.09.2008)

Bulgaria was on the brink of an unprecedented gas crisis because of heating companies’ (the Toplofikatsiya utilities around the country) unpaid debts, the state-owned gas company Bulgargaz said on September 3. Bulgargaz was urgently trying to collect at least 80 million leva from its debtors, the Sofia, Pleven, Vratsa and Bourgas heating companies, to pay Russian gas provider Gazprom. The companies’ debts to Bulgargaz amounted to 230 million leva. If the company failed to collect its clients’ unpaid debts, the country might have to buckle down on gas usage, private broadcaster bTV said. Bulgargaz lacked the floating capital to pay Gazprom. Although the heating companies themselves could cut off gas consumption, the measure was not efficient enough and would not prevent a gas crisis, bTV wrote on its website. Bulgargaz executive director Dimitar Gogov told bTV that the 80 million leva was the amount the company “needed to get a breath of air, so to say”. Gas provision security was no longer problem only for the debtors, but for all consumers in the country. “It would not only be the paying customers of the heating companies who would be affected, but also customers in the economic and industry sectors – all gas consumers would be affected,” Gogov said. Toplofikatsiya Sofia was Bulgargaz’s greatest debtor. Sofia city hall, which is a majority shareholder in the company, was seeking for a way to help the debt to be paid off, bTV said. Among the possibilities was taking out a loan or increasing the company’s capital.
Source: Insurance.bg (05.09.2008)

"Bulgartabac's cigarette plants in Sofia and Blagoevgrad will be sold separately on the stock market, but on one condition: that the buyers are strategic investors," Bulgarian Minister of Economy and Energy Petar Dimitrov told The Standart yesterday. "This is the only possible way to denationalize Bulgartabac Holding under the adopted strategy," he said. "We have still not decided yet on the buyer of Kremikovtsi Steelworks," Dimitrov added. Who is going to get Kremikovtsi ownership will be the state's call, since it is the company' largest creditor. The first general meeting of the creditors of the steel company will be summoned on Septermber 26 when they will have to choose the next owner. But before that, all of them have to declare that the company owes them money to be included in the list of the assignee in bankruptcy and approved by the court. Bulgaria already claimed back 700 million levs (1 euro = 1.95 levs) of principal amount and interests, which the company, up to this point, has been considering as a state aid. And that's not all: the smelter must also repay old liabilities to the state-owned enterprises such as the National Electrical Company, Bulgargaz and the State Railway Company (BDZ).
Source: Standart (08.09.2008)

Bulgargaz presses for 36.5 pct price hike Gas retailer Bulgargaz said it has asked for the regulator’s nod to put up natural gas prices by 36.51 pct in the fourth quarter of the year. It said the demand was prompted by soaring alternative fuel prices, the rising U.S. dollar and the lower third-quarter price approved by the regulator. The watchdog can either okay or reduce the price hike request.
Source: Dnevnik (11.09.2008)

A hundred creditors are all agog on Kremikovtzi Several dozens, if not thousands, appeared to be the creditors of Kremikovtzi. The deadline for application of claims by creditors of the steelmaker was yesterday, September 11. Verifications with the account reports of Kremikovtzi are already being made in order to find out whether the applied claims are for realistic sums. After that the court would decree on whether the steel plant has to pay them, said Lyudmil pavlov, head of the Podkrepa union at Kremikovtzi. The state is expected to be the major creditor after the claim from last year for BGN 700 mln. The sum represents remitted debt before the privatization, which is state aid and Kremikovtzi has to return the funds. BGN 90 mln more is the debt to National Electricity Company (NEK). BDZ and Bulgargaz also have vast amounts of money to take. The gas holding said that no claim has been applied. In stead, Bulgargaz negotiates with the assignee on bankruptcy of the mill for the payment of the debt. Kremikovtzi bondholders won a legal case back in May, when the English Supreme Court decreed that Kremikovtzi has to pay them the bond loan of EUR 325 mln. It is reported that Lakshmi Mittal has not given Kremikovtzi up yet. His company ArcelorMittal may buy Kremikovtzi’s debt to the Black Sea Trade and Development Bank of EUR 18 mln, and thus enter the ranks of the creditors.
Source: Standart (12.09.2008)

So far the amount of gas delivered to Heat Supply-Sofia JSC has not changed, but it is possible to be reduced as early as this week. This was stated by the executive director of Bulgargas Dimitar Gogov. Gogov said that there is new payment schedule for the Heat Supply and still it is fulfilled. If we see that Heat Supply-Sofia is not fair to us, we will begin to reduce the gas supply quantity, said Gogov.
Source: Monitor (16.09.2008)

The debt of Heat Supply-Plovdiv JSC to Bulgargaz is BGN 14,359 million. At the end of 2007 the liabilities to Bulgargaz were BGN 17.9 million. The heat company intends to continue to pay the accumulated debts correctly. This will help the recovery of the company and will allow Bulgargaz to carry out regular supplies of fuel.
Source: Banker (17.09.2008)

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)

Bulgarian Business Rises against Expensive Natural Gas The business in Bulgaria is bitterly protesting the high prices of natural gas. The Confederation of Employers and Industrialists in Bulgaria has declared itself against the one in a row increase in the price of natural gas. In its declaration, CEIBG firmly supports the position of the Bulgarian Federation of the Industrial Energy Consumers against the announced by Bulgargaz increase in the price of natural gas by 36.5% from October 1. The Bulgarian business says it is inexplicable why Bulgargaz does not seem to take into consideration the serious decrease in the price of crude oil over the next trimester, although the price of natural gas is calculated against the prices of alternative fuels. Bulgargaz says the price of natural gas is calculated against the price of crude oil over the past ninety days, and on some of these days the price of crude oil went as high as about 150 US dollars per barrel. The average exchange rate of the US dollar against the Lev over the past thirty days is also taken into account, but just then the dollar started getting stronger. However, CEIBG are of an opinion that the formula used in the calculation of the price of natural gas is outdated and needs to be adjusted by the State Energy and Water Regulatory Commission. The industrialists also say that by setting higher prices to natural gas the state maybe wants to "encourage" the big companies to subsidize some of Bulgargaz's big debtors like the central heating companies and Kremikovtsi. CEIBG says that the Ministry of Energy and Economy, the State Energy and Water Regulatory Commission and representatives of the business should meet and discuss the current situation, because this is the only way to prevent bankruptcies and a sharp fall in the foreign investments in Bulgaria.
Source: Standart (19.09.2008)

The heating utility of the northern town of Pleven will settle its debts to state-controlled gas distributor Bulgargaz by directly transferring its power output dues from the national power grid operator NEK, the utility’s press office said. The utility has already sent letters to energy minister Petar Dimitrov, Bulgargaz executive director Dimitar Gogov and NEK chief executive officer Lyubomir Velkov. The Pleven heating utility produces some 4.0 mln levs worth of power a month and sells it to NEK. The company owes more than 3.1 mln levs to Bulgargaz. The proposal talked the gas distributor into keeping supplies to the utility on Monday. The negotiations between the two parties are still underway.
Source: Dnevnik (23.09.2008)

The three central heating companies Vratza, Burgas and Pleven have found a short term solution to the problem with unpaid bills towards "Bulgargaz". Representatives of the three central heating companies have met with the management of "Bulgargaz" yesterday evening. The signing of the agreement will take place today, when details will be announced, BNR (Bulgarian National Radio) announces. According to the three companies - the long-term solution to the problem with financial obligations towards "Bulgargaz" depends on the morals and conscience of the citizens, who use the service. If they start paying their bills on time, central heating companies will not be in a situation, where they cannot pay their liabilities. Despite the many liabilities of the central heating companies towards "Bulgargaz", opinions were expressed that the action of the gas monopolist is political, and not economic, since all three cities are governed by mayors of the opposition. The future of Sofia Toplofikatsiya is being discussed at the moment.
Source: news.bg (26.09.2008)

Bulgaria and Bondholders Rival for Supremacy in Kremikovtsi The horn of the expected battle for control over Kremikovtsi Steelworks has sounded at last at yesterday's meeting of Kremikovtsi's creditors in Sofia City Court. The difference between the Bulgarian state and the bondholders' claims is BGN 6 million. Adding the liabilities Kremikovtsi has incurred with the State Receivables Collection Agency the precise amount the smelter owes to the Bulgarian state reaches BGN 698.9 million or 29.5 percent of the company's total liabilities. In turn the bondholders are breathing down Kremikovtsi's neck with a claim for BGN 696.6 million or 29.2 percent. However, if we count up what the National Revenues Agency, Customs Agency and several state-owned companies such as Bulgargaz, the National Electrical Company (NEC) and the State Railway Company (BDZ) must get, Bulgaria definitely wins the fight. A total of 725 legal and natural persons are on the creditors' list, and the size of their claim is BGN 2.371 billion. All of them were diligently described by the court panel with Sofia City Court Chairman Svetlin Mihaylov in charge of it.
Source: Standart (27.09.2008)

Gazprom supply contracts hurt Bulgaria The gas supply and transit contracts signed with Russian Gazprom in 2006 are against Bulgaria’s interests and face consumers with shock price hikes, showed a supplemental agreement to the contract for supply of natural gas to Bulgaria and the memorandum for further development of Russian-Bulgarian cooperation in the gas sector. Under the new contracts, Bulgaria is to increase each year by a set agenda the price of natural gas for the domestic market received as a transit fee from the transfer to Turkey, Greece and Macedonia. The contracts, signed by Bulgargas and its partners Overgas Inc. (a Gazprom subsidiary) for supplies and Gazprom Export for transit, say that the gas from transit fees should cover about half of domestic consumption. This can explain why the rising price is having such an enormous effect on Bulgargas’s average sell price. Depending on the supplier, the 2008 price ranges from USD 383.18 per 1,000 cu m (for Overgas Inc.) to USD 415.87 under the contract with WIEE-ZUG. The price is increased semi-annually and was set at 60% of the market price for July 2008 and 82.5% for January 2009. It should catch up with the price of normal supplies by 2013. The documents also change the payment scheme for the transit fee.
Source: Dnevnik (29.09.2008)

Price of Natural Gas to Soar by 50% by January 2009 Bulgarian Government is preparing to introduce shockingly high prices of natural gas. Today, its price goes up by 23,89% and on January 1, 2009 - by another 21,4%. Thus, in three months alone, the price of gas will go up by about fifty percent, representatives of the trade unions said after yesterday's sitting of the National Council for Tripartite Cooperation. In the afternoon, the State Energy and Water Regulatory Commission set the price of natural gas at 538,66 levs per 1,000 cubic meters (VAT excluded) from October 1 on. This is by 103,86 levs higher by the current price of gas, which is 434,80 levs per 1,000 cubic meters (VAT excluded). Bulgargaz profit is 0.5% per 1,000 cubic meters of gas. Experts say the new price of gas will guarantee the unproblematic functioning of Bulgargaz. "The employers' organizations agreed to a two-step increase in the price of natural gas," Minister of Economy and Energy Petar Dimitrov said after the sitting of the Council. "This increase in the price of natural gas will prove deadly to the business," representatives of the employers' organizations said in answer. Prof. Konstantin Shushulov, Chairman of the State Energy and Waters Regulatory Commission, said the higher price of gas may cause the price of central heating to go up by over 12%. On Monday, the Commission submitted at the office of Deputy PM Ivaylo Kalfin a proposal for amendments to the Ordinance for Formation of the Price of Heating Energy, but its experts have not analyzed the options for a future increase in the price of gas, yet. "We will find mechanism to compensate the socially-handicapped," Minister Dimitrov said. Benefits may be allotted to the households consumers of natural gas.
Source: Standart (01.10.2008)

Russia Raises Gas Prices for Europe In October Russia will sell natural gas to its European consumers at US$500 for 1000 cubic metres. "The reason is the quicker pace of price increase than expected," said Alexey Miller, Gazprom CEO. The prices of petrol products are rising and the price of natural gas is formed on their basis. Experts believe that by the end of the year the price of natural gas for the European consumers will rise up to US$550 for 1000 cubic metres. Energy projects in Bulgaria will be the top agenda at the session of the intergovernmental Bulgarian-Russian commission for economic cooperation to be held in Sofia October 8-9.
Source: Standart (03.10.2008)

Gazprom Delays Launching of South Stream Gas Pipeline – Report The Russian energy giant "Gazprom" is going to take its time with the South Stream gas transit pipeline by putting off the launching of the projects by at least two years, the Russian business newspaper Vedomosti reported Friday. In January the Gazprom Director Aleksei Miller stated the first gas would be delivered through the pipe in 2013. Bulgaria is an important participant in the South Stream project. Vedomosti, however, cites the company's "General Plan for the Development of the Gas Sector by 2030", of which it claims to have a copy, as saying the gas deliveries through South Stream would start in 2015-2024. The documents also mentions the exact projected capacity of the pipeline, which had not been revealed previously - 31 billion cubic meters per year. The exact time of the launching of the South Stream would depend on a number of factors, according to the Gazprom's General Plan, including the conditions on the domestic and foreign markets, the state policy in the sectors, and the success of the negotiations on its route with other countries. Vedomosti points out the document did not contain any estimate of the cost of the construction of the pipeline but it reminds that earlier the South Stream section going through the Black Sea was estimated to cost USD 10 B, plus at least as much for its land part. The General Plan also mentions that Russia needed to construct 2 400 km of pipeline on its own territory in order to be able to launch South Stream. The article cites a Russian analyst as saying this delay by at least two years could allow the EU-sponsored Nabucco gas pipeline, which is considered a competitive project, to grab hold of the Central European market. Respectively, this could then force Russia and Gazprom to reconsider the South Stream project.
Source: news.bg (03.10.2008)

Bulgarian Companies Struggle for Projects in Sochi 'The participation of Bulgarian construction companies in the building of facilities for the winter Olympics in Sochi will be one of the topics of discussion at the oncoming Bulgarian-Russian Commission for Economic Cooperation. The forum will be held in Sofia October 8-9, Minister of Economy and Energy Petar Dimitrov told the Bulgarian National Radio. The top agenda at the conference is Bulgaria's cooperation with Russia in the energy sector, the big energy projects Belene nuke and South Stream pipeline. The Russian delegation will be led by Deputy PM Sergey Sobyanin. There will be eighty people on the Russian delegation, six of them are deputy ministers. 'Since the end of 2007, the price of Russian natural gas transited via Bulgaria has increased by 85.4% and the end users pay by 72.9% more for natural gas,' Minster Dimitrov said also.
Source: Standart (06.10.2008)

Bulgaria will seek talks with Russian gas major Gazprom on adding an extra 500 million cubic metres to the 3 billion cu m it gets a year because of growing consumption, energy minister Petar Dimitrov said on the sidelines of a session of the Bulgaria-Russian economic commission. Bulgarian Energy Holding (BEH), a newly-created structure bundling Bulgaria’s key power generation assets, may join hands with its Russian peer on oil and gas exploration projects. The minister said there will not be legislative bars before a future cooperation although Russia keeps foreign companies out of its mineral, oil and gas fields.
Source: Dnevnik (10.10.2008)

Bourgasgas EAD, the company for distribution and supply of gas, will put up a claim against Bulgargas for breaking the contract for fuel supply by stopping the gas for six hours, the executive director of the company Zlatin Dimov announced for Pari Daily. The company is still in the process of building up the supply network. For 2008 BGN 5 million will be invested for the building of 26 km. Already 200 enterprises have been gasified.
Source: Pari (13.10.2008)

Bulgaria's Cabinet Has Taken up the Heavy Cross of Natural Gas Supplies President Georgi Parvanov - Mr. President, the Opposition is mainly criticizing the Bulgarian Socialist Party (BSP) about the negotiated price of natural gas. Some say that you have also participated in the formation of these prices. Is it true? - Let me explain. I have contributed to the negotiations on the three strategic projects signed in January this year, including the agreement on the South Steam project, which does not touch upon any prices. The issue about prices had been decided long before that and I was informed about the results of these negotiations only post factum. Of course, such negotiations might, as well, not have been conducted. This Cabinet could have left the issue undecided, thus passing the responsibility about it on to the next Government. Had this happened, however, the next Cabinet would have faced a fait accompli after the expiration of the previous contract and would have had to choose between a turned off gas tap and a hike in the prices of the supplied natural gas. It is true that the present increase in the prices of natural gas is also shocking, but you could imagine how drastic the hike would have been in the other scenario. In this line of thoughts it is praiseworthy that the incumbent Cabinet took the responsibility to solve this issue. On the other hand, the Bulgarian people should have been informed of the coming increase in the price of natural gas and protection buffers should have been provided for the socially handicapped, as well as for some companies. It is also true that some companies benefited a lot from natural gas subsidies in the past, but now they have to understand that we have to stick to the market prices of natural gas. Otherwise the gas subsidies for these "privileged" companies should be paid by the Bulgarian tax payers. - Some share the opinion that you are Russia's man as regards the energy projects. Is it so? - I have heard all sorts of things about my foreign policy. I have visited Brussels more than ten times. There isn't a European capital that I haven't visited. When the issue of Bulgaria's EU membership required timely and adequate diplomatic actions, I did not my spare efforts. As a EU member, Bulgaria's policy should become more economically oriented and in this line of thoughts we should find a more efficient mechanisms for development of our energy policy. Two months after the agreement with Russia was signed, I went to Azerbaijan, where I negotiated the supply of one billion cubic meters of natural gas for Bulgaria - our quota in the Nabucco project. Now we are preparing shuttles to Turkmenistan and Uzbekistan - countries that are potential suppliers of natural gas for the same project. And I will not stop here. I believe it is all for Bulgaria's good. It is for the good not of this Cabinet, perhaps not of the next. But till 2030 many Bulgarian governments will benefit and what is more important, the Bulgarians will benefit. As long as Russia is concerned, our relations are based on honesty, principles, and I think, on mutual benefit. - You said you were organizing an energy forum to be attended by representatives of Russia, Europe and the USA. When will it take place and what will be the main topics of discussion? - We have sent the invitations already. The possible dates we have proposed are April 24 and 25, 2009. It promises to be quite a broad forum - with the participation of over 25 heads of state and prime ministers, of European institutions, with the support and understanding on part of the USA. Their support was aired literally a couple of days ago by the US energy ambassador for the region. Russia has confirmed its participation at the highest possible level, a number of countries from the Black Sea and Caspian regions have confirmed their participation as well. I hope this forum will yield results. For the first time issues related to diversification of Europe's energy supply will be discussed in such deep detail. - Not long ago you demanded that a discussion should be held on the relations between the media and the rule. Is the Bulgarian public mature enough for starting a debate on which media are financed by the grey sector? - Look, I will not pretend that I am simply confused because I am outright irritated at the fact that representatives of the grey sector have confidently cropped up from among the media. These representatives give advice. They dare behave like mentors. They behave insolently. They establish their media, mostly sites in the Internet. They attempt to conquer some of the yellow press and use it as a tool for carrying out their political racket. And since this press is subject to no rules, the discrediting of anybody is as easy as a piece of cake. This obviously aims at the return of grey sector. The grey sector tries hard and does its best to stop Bulgaria's permanent incorporation into the European structures and the European mentality and behaviour. It is not so much the job of the politicians as the media sector itself, to judge who is who and the roles of everyone in this space on the basis of its inner rules and ethics. It is wrong to reduce everyone to a common denominator.
Source: Standart (14.10.2008)

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 Åast Ìines, thermal-electric power station Maritza Åast 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)

Zhevago Jilts Kremikovtsi Kostyantin Zhevago has decided to terminate his Vorskla Steel's outsourcing relations with Kremikovtsi Steelworks, Vorskla Steel Bulgaria CEO Viktor Demyanyuk announced. "They are taking us for an ATM machine," he said. Vorskla Steel's withdrawal was because they felt like "uninvited guests" in Bulgaria. "We never met the support of the Bulgarian government or the bankruptcy officers," Demyanyuk said.
Source: Standart (21.10.2008)

Bulgarian Government Granted 150 Million EUR For NPP “Belene” The Bulgarian government granted 150 million euro for accelerating the construction of the nuclear power plant (NPP) “Belene”. The resources will be transferred to the capital of “Bulgarian energy holding”. The money will secure the intermediate stage of the preparation of the project NPP “Belene” till its financial conclusion in December 2009. By the end of the next year the expenses which should be born by the National electric company are around 450 million euro. Mainly the sources are for advance and current payment in the ordering of equipment – reactor, steam generators and others, preparation of working projects and funding of the first activities of the new construction. The granted today money will help the National electric company secure source for its part of the capital in the forthcoming establishment of a joint venture between NEC and the chosen investor RWE.
Source: Darik Radio (23.10.2008)

The Government will grant BGN 300 mln to raise Bulgarian energy holding’s capital. This will result in raise in the capital of the National electric company, necessary for acceleration of AES Belene’s construction. The money will be generated from correction in the budget of the Ministry of economics and energetics.
Source: mediapool.bg (24.10.2008)

New gas-field discovered in Bulgaria A new gas-field was discovered in Bulgaria by the British company "Melrose resources", the British newspaper "Scotsman" writes. The gas-field is located in the Kavarna region, for which the company has a permit. "Melrose resources" supplies 15% of the natural gas in Bulgaria from the Galata field, which will become a depot. Recently, the company found another gas-field in the Kaliakra region. The blue gas will be accepted in the Galata depot next summer and will be on the market next winter, when energy consumption increases, the paper writes. The initial estimations show that the field has 24 billion cubic meters of natural gas. The favorable conditions create an opportunity for financial success of the Edinburgh based company, after the Galata field is depleted. Extraction from the Galata field will be reduced.
Source: news.bg (30.10.2008)

Bulgaria's Government to Wait for RWE's Answer by the Spring of 2009 The Bulgarian government has not set a deadline for Germany-based company RWE to ratify the joint stock agreement for the acquisition of 49 percent of the project for construction of NPP Belene, but an answer from the Germans is expected not later than the spring of next year, Deputy Economy and Energy Minister Yavor Kuyumdzhiev said during the 10th Economic Forum on Southeast Europe that opened in Sofia. "RWE will make a foolish mistake, if they give up on the contract," he said. According to him, if they give in under the pressure of the greens and give up on the project, the construction of the nuclear power plant will not stop, but their place will be taken by some of the other candidates. If not other candidate appears, Belene will be built with bank loans, or with money from the currency reserve, which now amounts to 12 million euro. Another option is the about four billion euro, which Russia has provided in its budget by 2010, should financing of the Belene project be necessary.
Source: Standart (07.11.2008)

Bulgaria admits German RWE upset about Belene NPP Bulgaria’s national power utility NEK will wait till next spring for German company RWE to decide whether it will join the Belene nuclear power plant project in the Danube town of the same name. The energy ministry has not set a deadline for approval of the shareholders’ agreement which gives the German strategic investor a 49% stake in the project company, said deputy minister Yavor Kuyumdjiev adding that RWE would make a grave mistake if it succumbed to pressure by eco activists. German newspaper Handelsblatt reported recently that RWE’s supervisory board may postpone the vote on the agreement until 2009 to make sure that the project is not risky and see how what turn the global economic crisis would take. Meanwhile, Greenpeace urged the German company to quit the project. If the plant failed to attract funding, the state may dip into the EUR 12 billion foreign exchange reserves, Kuyumdjiev said. He probably meant the fiscal reserve of BGN 12 billion. The forex reserves are just above EUR 14.2 billion, under data of the central bank. As a last-ditch option, the nuclear plant will be funded by Russia. Economic parliamentary committee chairman Yordan Tsonev declined that the government has ever discussed funding infrastructure projects by the fiscal reserve.
Source: Dnevnik (07.11.2008)

The financial crisis might delay "Southern stream" even more The financial crisis may force the Russian energy giant "Gazprom" to revise the project "Southern stream". This was announced by an employee of the company at a conference in Slovenia, AFP announced. The current financial crisis might influence to a certain degree the results of every international company, "Gazprom" being no exception - Stanislav Zyuganov, head of the department for international business for the Russian company, said. He has pointed out that "Gazprom" might be forced to reconsider its "Southern stream" project in response to the crisis. Information appeared in the Russian media that "Gazprom" is delaying the start of "Southern stream" until 2015 or 2 years after the deadlines, pointed out by the Chief Executive Officer Alexei Miller in January. The gas pipe, connecting Russia with Southern Europe through the Black sea, is designed by "Gazprom" and the Italian energy company Eni. "Gazprom" already guaranteed the participation in the project of Bulgaria, Greece, Hungary and Serbia. The participation of Austria and Slovenia is also possible.
Source: news.bg (10.11.2008)

GDF Suez could subsitute RWE in NPP "Belene"? The French energy giant GDF Suez claimed on Monday that “in principle it is interested” in the purchase of a share in the second Bulgarian nuclear power plant “Belene”. Last month the Bulgarian government decided to determine the German energy company RWE for its strategic partner, who to buy a share of 49% of the planned NPP “Belene”. The Bulgarian side gave the opportunity the share of 49% to be divided into parts in order the second participant in the tender, the Belgian Electrabel, which is owned by GDF Suez, to be included in the investment. The vice-president of the French company on nuclear issues Paul Rorive has confirmed GDF Suez' interest during the energy conference in Sofia pointing our that he was not informed about the conditions under which the Bulgarian government has negotiated with RWE. The government in Sofia has claimed: you can participate in the project but you cannot change the conditions – so now the French company is checking the conditions. According to Rorive in the next week GDF Suez will explore carefully the strategic framework agreement between RWE and the Bulgarian National electric company, which remains with 51% of the shares of the new nuclear electric station.
Source: news.bg (18.11.2008)

Bulgaria Produces 32 Billion kWh for Export In 2020 Bulgaria would have 32 billion kWh in excess if the energy projects currently supported by the cabinet are implemented. This was announced by Plamen Tsvetanov from the Institute of Nuclear Research and Nuclear Power Engineering with the Bulgarian Academy of Science. According to him, currently Bulgaria exports 5-6 billion kWh per annum, but in twelve years there won't be markets for the extra power. By 2050 Bulgaria will be able to rely on electricity generated by wind farms or solar batteries, which would make the country energy independent.
Source: Standart (20.11.2008)

The Sofia heating utility may enter the newly-founded Bulgarian Energy Holding after the ministry was granted a 58% municipal share in the ailing company, deputy minister Galina Tosheva told Dnevnik. The ministry and Deloitte Bulgaria, which advised the creation of the holding structure merging major power generation assets, are weighing different rescue options including a capital boost at the holding company to lend cash to Bulgargas, Tosheva said. Under the scheme, the holding company will buy into Toplofikatsia Sofia against paying off its debts to the gas company. The Government is due to vote on a BGN 80 million capital hike next week. The money will be sourced from the state budget. Tosheva said this did not violate EU law as confirmed the ministry’s legal experts. Another option on the table is giving Bulgargas a loan to guarantee supplies from Russian major Gazprom. Consumers owe the struggling utility more than BGN 300 million.
Source: Dnevnik (25.11.2008)

'Bulgargas' to gradually increase the gas prices for the big energy consumers “Bulgargas” will secure gradual increase in the prices of natural gas in 2009 for the big energy consumers. This announced the Bulgarian chamber of commerce, according to the suggestion of which the decision was taken. The business energy consumers will have the possibility for a deferred payment of the contracted with “Bulgargas” amounts of natural gas. The decision was taken yesterday at a working meeting of the management boards of the enterprise, the nationally represented business organizations and the big energy consumers. The new mechanism is expected to help the business and the citizens cope easier with the burden of the expected increase of the natural gas price from 1 January 2009, informs the Bulgarian chamber of commerce.
Source: news.bg (26.11.2008)

New prices of natural gas The new prices for the distribution and supply of natural gas of "Burgasgas" become effective today. They were approved with a decision of the State commission for energy and water regulation. The prices of natural gas for private consumers decrease on average by 3 percent beginning today. In the private usage sector 1 kilowatt energy, produced with natural gas will cost 9,9 stotinki, while the price of electric energy for private consumers is 15,3 stotinki per kilowatt. The price of gas is 20,8 stotinki per kilowatt. In the commercial sector 1 kilowatt energy, produced with natural gas will cost 7,8 - 9,4 stotinki (minimum-maximum). The new prices for distribution and supply with natural gas of "Burgasgas" EAD keep the competitive price of natural gas compared to the alternative energy sources, the company announced.
Source: news.bg (01.12.2008)

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 country’s 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)

The government increased the capital of the Bulgarian energy holding by 400 million levs. The State will acquire nearly 63 000 shares of "Toplofikatsiya Sofia" AD for free and in this way will become a 100% owner of the company. The 400 million levs will be disbursed by the Economy Ministry and will be used for the purchase of the shares of Toplofikatsiya. The Sofia company produces over 1 billion kilowatt hours electric energy and currently renders services to over 400 000 households in the capital. "Toplofikatsita Sofia" AD is the biggest central heating company in the country.
Source: news.bg (05.12.2008)

Bulgarian Energy Holding will buy Sofia heating utility’s BGN 240 million debt to state-run gas company Bulgargaz, deputy energy minister and BEH executive director Galina Tosheva said after the Government voted Thursday on a BGN 400 million capital hike. Toplofikatsia Sofia has amassed a BGN 80 million debt for supplies. Last year it was rescheduled a BGN 150 million debt until 2013. BEH, which bundles Bulgaria’s core state-run energy assets, will acquire a stake in the utility after boosting its capital by as much as it owes to Bulgargaz.
Source: Dnevnik (08.12.2008)

Bulgargaz demands a 21% increase of the price of natural gas A price increase of natural gas of at least 21% beginning January 1 was demanded by Bulgargaz from the State commission on energy and water regulation. Thus, in the next quarter of the year, 1000 cubic meters of gas will be sold at about BGN 653, VAT not included. The gas company motivated the demanded price increase with the over 15% increase of the value of the USD in the last period, as well as the lower price, which was ordered by the national regulator for the previous quarter. At the same time, during setting of the new prices, employees of the company have taken into account the lower prices of alternative fuels.
Source: news.bg (10.12.2008)

"Gazprom" decreases prices for Bulgaria In the next year "Gazprom" will reduce the price of natural gas for Bulgaria by 35-40% according to the current situation. This was announced by the spokesman of the Russian gas company Sergey Kupriyanov. The delegation of the company is on an unofficial meeting in our country. "As you know the price of gas is connected to the price of petrol products. Within this year, the price of petrol products was dropping and of course, all of this is going to be reflected in the wholesale prices of "Gazprom" for Bulgaria in the next year. Up to this moment it is impossible to say how prices will change throughout the year, because the situation continues to develop and we don't know how the price of petrol will change next year. According to our estimates the price of gas in the next year will drop by 30-40%," Kupriyanov pointed out.
Source: news.bg (12.12.2008)

Gazprom sees 30-42% price cut from ‘09 Russian gas major Gazprom may lop off by 30 to 42% the tariff for supplies to European consumers next year due to the recent record decline in oil prices on the global markets, spokesman Sergei Kupriyanov said. Kupriyanov said Bulgaria will also buy at lower prices but did not elaborate further. According to Bulgargaz, Bulgaria’s state-run gas distributor, the effect of the price cut will not be felt before April. The company is demanding a 21.3% price hike from January to limit the bad impact of soaring black oil and gas oil tariffs. While seeing consumption picking up 3% for 2008 against a planned 7% as warm weather lingered and production capacities were shut, the gas monopoly will pay for all it has ordered under a take-or-pay clause in the supply contract. Bulgaria should consume less than 3 billion cu m for the clause to be triggered, Kupriyanov said. The ongoing financial crisis will not affect the South Stream natural gas pipeline project, Kupriyanov said.
Source: Dnevnik (15.12.2008)

The price of natural gas increases by nearly 12% on January 1 The price of natural gas will increase by 11,79% on January 1 2009. This has been planned by the State commission for energy and water regulation. If this plan becomes effective, the raw material will increase in price from BGN 538.66 per 1000 cubic meters (without VAT) to BGN 602.17 per 1000 cubic meters (without VAT). The final decision will be taken by the regulator next week after the open session for review of the report of the work group and a hearing of the arguments of Bulgargaz SPLTD.
Source: news.bg (16.12.2008)

Bulgaria to Export Electricity to Macedonia The National Electrical Company will export electricity worth 9.5 million euro to Macedonia, as reported from yesterday's inauguration of the Dubrovo-Chervena Mogila overhead power line, attended by Bulgaria's PM Sergey Stanishev and Minister of Economy and Energy Peter Dimitrov. The 150-kilomenter long power line costs 50 million euro. Bulgaria's participation in the project is 16,6 million euro. Bulgaria's PM Stanishev and his Macedonian counterpart Nikola Gruevski also discussed the possibility of Macedonia joining in the construction of Belene Nuclear Power Plant (NPP). Stanishev was firm that Belene NPP was an important guarantee of constant power supply not only for Bulgaria, but for the entire region. "Negotiations as to Macedonia's involvement in Belene NPP are yet to be scheduled," Stanishev clarified. Both Stanishev and Gruevski expressed their satisfaction with the economic partnership between Bulgaria and Macedonia. "The commercial exchange between our countries has increased by 15 times in the last 9 years", Gruevski pointed out. According to Stanishev, so far Bulgaria has invested 36 million euro in Macedonia. Gruevski expressed his hope that the trade exchange between Bulgaria and Macedonia soon reached 1 billion euro.
Source: Standart (16.12.2008)

Bulgaria’s energy regulator may slap a BGN 1 million fine on Bulgargaz, the state-run gas monopoly, for importing costlier Russian gas instead of tapping on the gas repository in Chiren in the past quarter, said chairman Konstantin Shushulov. The gas company snubbed a regulatory decision to increase prices for Chiren quantifies in a bid to trim imports from Witershall Erdgas Handelshaus, Gazexport and Overgas Inc.. Bulgargaz has caused a BGN 44 million damage to the state by importing Russian gas at the highest possible prices instead of using 209.2 million cu m from the Chiren depository at BGN 396.78 per 1,000 cu m, Shushulov said.
Source: Dnevnik (17.12.2008)

Bulgarian Companies Extract Gas for Nabucco Bulgarian companies would be licensed for extracting natural gas for Nabucco project. Bulgarian businessmen will be able to take part in joint ventures and invest in the production of natural gas from countries where this fuel is abundant, the Standart learnt from sources from the delegation led by Bulgaria's President Georgi Parvanov who is on a two-day visit to Turkey. Nabucco is a rival project to the Russian South Stream and is expected to start functioning in 2013 and transport gas from Turkey to Austria via Bulgaria, Romania and Hungary. Turkey assured Bulgaria gas will be supplied just in exchange for the transit fees,it emerged at the meeting of President Parvanov and Turkey's Prime Minister, Recep Erdogan who talked in the Swissotel in Ankara under tight security measures. By now Bulgaria has negotiated two billion cubic metres of natural gas on Nabucco project. Today Georgi Parvanov will make an official visit to Turkmenistan where an energy agreement is also expected to be signed.
Source: Standart (18.12.2008)

Gas-rich Turkmenistan, Bulgaria sign energy pact Bulgaria secured a tentative deal Friday to receive gas supplies from energy-rich Turkmenistan that could lay the grounds for increased gas deliveries to Europe from the Central Asian nation. Bulgarian President Georgi Parvanov said that Turkmenistan has backed a proposal to provide 2 billion cubic meters of natural gas to his EU-member nation through the existing pipeline network through Russia. The two countries also signed a memorandum of understanding that will help ensure coordination on boosting global energy security, Parvanov said. "I believe that on the international level, we will begin to speak with one voice when it comes to supporting (energy security)," Parvanov said after a meeting with his Turkmen counterpart, President Gurbanguli Berdymukhamedov. Parvanov has backed a U.S.- and EU-backed Nabucco pipeline that could ease Europe's reliance on Russian energy. The route would run from the Caspian Sea across Turkey, Bulgaria, Romania and Hungary to Austria. But Parvanov also has signed a deal with Russia to build a pipeline under the Black Sea which Moscow has offered to underline Nabucco. Russia and the West has been competing for Turkmen and other Central Asian energy resources in what was widely compared to the 19th century "Great Game" race for domination in the region between the British empire and czarist Russia.
Source: econ.bg (20.12.2008)

NPP Belene Construction May Turn Cheaper The construction of Bulgaria's second nuclear power plant Belene may turn out cheaper than expected because of the deflation following the global financial crisis, NEC CEO Lyubomir Velkov said yesterday. Mr. Velkov signed the agreement between the Bulgarian state and Gemany-based energy company RWE for the establishment of a joint venture on the Belene project. According to initial calculations, the construction of NPP Belene will cost four billion euro. Although the initial price of the construction was included in the signed agreement, there will not be a problem if the total cost of the project goes down, Velkov says. Belgium-based Electrabel, which until recently was a competitor to the German company, may now decide to join the joint NEC-RWE joint venture. Dr. Gerd Jager, Member of RWE Power AG's Executive Board in charge of Nuclear Power Plants the Standart that there would be talks between the German company and Electrabel in the next few days. He and Antonius Voss, Executive Vice President and CFO of RWE Power AG, signed the join venture agreement on the part of RWE. On the part of the Bulgarian state, the agreement was signed by Velkov and NEC Executive Director Mardik Papazyan. If Electrabel joins in the joint venture, they and RWE will hold 24.5% each and NEC will hold 51% of the shares
Source: Standart (20.12.2008)

Bulgaria Threatened by Gas Cut-off The consumers of natural gas in Bulgaria are threatened by shorter supplies, if the argument between Ukraine and Russia continues. According to Bulgargaz CEO Dimitar Gogov, the situation will become critical if the gas supplies drop to 6 or 6.5 million cubic meters a day. The average gas supplies to Bulgaria are slightly over nine million cubic meters, but they have fallen by about fifteen percent since last Friday.
Source: Standart (05.01.2009)

The beginning of the new year brought new gas problems. Russia and Ukraine cannot come to agreement over the price of natural gas and that disturbed gas deliveries to a number of European countries, among which is Bulgaria, too. There is no threat of gas shortage for the gas consumers, Feran Taradelas, spokesman for the European Commissioner on Energy Andris Piebalgs, said. According to him, the most affected countries are Hungary, Slovakia, Romania, and Poland but there are no serious problems in any country, member of EU. The conflict between Russia and Ukraine is mainly commercial and the eurocommission will not take the role of mediator, he commented. According to statistics, reserves of the European countries are between 70 and 90%, which are sufficient. Yet, the conflict raised the question for alternative ways for the gas supplies from Russia, the country that provides 25% of the blue fuel for Europe. By the end of 2008, Russia wanted Ukraine to pay USD 413 for 1,000 cubic m plus USD 600 million fees for delayed payments. Ukraine denied to pay the fees and said the price was too high: it was ready to pay not more than USD 235 for 1,000 cubic m. The decreased supply by 20-30% will not seriously influence Bulgarian economy as it is working with lower capacities at the moment but the most affected will be metallurgy and power heating utilities, Bozhidar Danev, chairman of Bulg
Source: Pari (06.01.2009)

Cabinet with BGN 3, 6 million expenditure The Bulgarian Government’s fiscal reserve has lost a record amount of BGN 3.6 million for a month, according to a weekly statistic of the Bulgarian National Bank Emission department. Data of the central bank shows the cabinet’s deposits totaled up to BGN 11.06 billion on November 21 and were reduced to BGN 7.4 billion until December 23. During the same period of 2008 BGN 1.8 billion were spend from the Governmental financial resource. The Ministry of Finance stated the reason for the expenditure were traditional capital expenses at the end of the year as well as BGN 1.2 billion from the budget surplus assimilated by decision of Parliament. The Bulgarian Energy Holding and the Bulgarian Development Bank have had the greatest share of the fiscal reserve.
Source: Trud (06.01.2009)

Bulgaria Crashed by the Gas War The gas war shoveled Bulgaria into a freezer. This country has happened between the blows Moscow and Kiev are exchanging. Without a warning yesterday at 3:25 a.m. the gas supply for Bulgaria was stopped. This stirred panic in the whole country. The heating companies en masse decreased the supply for homes and offices. Schools, hospitals and nurseries remained in the cold. People rushed to buy electrical heaters. The big consumption of electricity led to breakdowns in the electricity network. Half of Sofia was switched off in the early afternoon. Electricity supply restrictions are inevitable if the central heating is stopped everywhere, sources from the National Electric Company informed. Bulgaria's Prime Minister, Sergey Stanishev urgently summoned his ministers to find way-outs of this crisis.
Source: Standart (07.01.2009)

Bulgaria's Energy Minister: Gas Crisis Will Be over In One Week Bulgaria's Energy and Economy Minister Petar Dimitrov stated that the gas shortage caused by the Russia-Ukraine price dispute would be over in a week. Dimitrov made this statement after his meeting with representatives of sixty large Bulgarian industrial consumers of natural gas, during which he informed them of the measures to restrict gas consumption. The Bulgarian government is introducing austerity measures in natural gas consumption starting at 8 am on Thursday, January 8, after the country was cut off from the Russian gas supplies early Tuesday morning. The industrial consumers have expressed their concerns that some plants might have to be shut down because of the natural gas shortage. Dimitrov himself announced that Bulgaria's chemical industry would suffer the most from the lack of gas.
Source: Darik Radio (08.01.2009)

Mass bankruptcies because of the gas crisis Bulgarian companies may hit the rock bottom because of the gas crisis as many of the installations operate only with the blue fuel, said the head of Confederation of Employers and Idustrialists in Bulgaria, Evgeny Ivanov. According to him the losses each day reach half a billion. In the next few days several of the leading metallurgical companies in the country may go bankrupt, said the CITUB union leader Vassil Yanachkov. They are Stomana Industry SA in Pernik, Promet in Bourgas, Shoumen-based Alcomet, Sofia Med and Steelmet in Sofia. Only a few installations operate on gas at Kremikovtzi, however, the supply as at minimum and in case of further decrease of the gas supply, emergency situations and ecological crisis may occur, the union said.
Source: Novinar (08.01.2009)

Bulgaria to import gas from Turkmenistan, Azerbaijan and Egypt Construction of an intersystem 70-km connection from Comotini to Dimitrovgrad would allow Bulgaria to use the negotiated gas supplies from Turkmenistan, Azerbaijan and Egypt. This option was discussed at the National Security Consultancy Council, called by the president Parvanov. According to him, the pipeline may be constructed either entirely by national funds, ot by European program financing or public-private partnership. An option for a terminal for liquified gas in Greece was also discussed.
Source: Novinar (08.01.2009)

President Parvanov: Bulgaria Can Survive 100 Days Bulgaria can survive the gas crisis for 90 to 100 days applying restrictions and without cutting off electricity and central heating, said yesterday president Parvanov after the meeting of the National Security Consultative Council. He explained that all recourses in the country have been mobilized, as the production of Galata and Chiren natural gas deposit supply daily 4 million cubic meters of gas. Parvanov added that all authorities agreed Bobovdol thermal power plant to be set in operation soon. Bulgaria's President pointed out as priorities Nabucco and South Stream pipeline projects. "Bulgaria needs alternative fuel sources and it needs to build a terminal for liquefied gas from Egypt and Qatar", added the president. He added that the pipeline Turkey - Greece should have an extension connecting it with Bulgaria. Both projects can be financed by EU funds and public private partnership, explained Parvanov. PM Stanishev has already raised the issue in a telephone conversation with the president of the European Commission Jose Manuel Barroso.
Source: Standart (08.01.2009)