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)