Bulgaria Threatened by Gas Cut-off The consumers of natural gas in Bulgaria are threatened by shorter supplies, if the argument between Ukraine and Russia continues. According to Bulgargaz CEO Dimitar Gogov, the situation will become critical if the gas supplies drop to 6 or 6.5 million cubic meters a day. The average gas supplies to Bulgaria are slightly over nine million cubic meters, but they have fallen by about fifteen percent since last Friday.
Source: Standart (05.01.2009)

The beginning of the new year brought new gas problems. Russia and Ukraine cannot come to agreement over the price of natural gas and that disturbed gas deliveries to a number of European countries, among which is Bulgaria, too. There is no threat of gas shortage for the gas consumers, Feran Taradelas, spokesman for the European Commissioner on Energy Andris Piebalgs, said. According to him, the most affected countries are Hungary, Slovakia, Romania, and Poland but there are no serious problems in any country, member of EU. The conflict between Russia and Ukraine is mainly commercial and the eurocommission will not take the role of mediator, he commented. According to statistics, reserves of the European countries are between 70 and 90%, which are sufficient. Yet, the conflict raised the question for alternative ways for the gas supplies from Russia, the country that provides 25% of the blue fuel for Europe. By the end of 2008, Russia wanted Ukraine to pay USD 413 for 1,000 cubic m plus USD 600 million fees for delayed payments. Ukraine denied to pay the fees and said the price was too high: it was ready to pay not more than USD 235 for 1,000 cubic m. The decreased supply by 20-30% will not seriously influence Bulgarian economy as it is working with lower capacities at the moment but the most affected will be metallurgy and power heating utilities, Bozhidar Danev, chairman of Bulg
Source: Pari (06.01.2009)

Cabinet with BGN 3, 6 million expenditure The Bulgarian Government’s fiscal reserve has lost a record amount of BGN 3.6 million for a month, according to a weekly statistic of the Bulgarian National Bank Emission department. Data of the central bank shows the cabinet’s deposits totaled up to BGN 11.06 billion on November 21 and were reduced to BGN 7.4 billion until December 23. During the same period of 2008 BGN 1.8 billion were spend from the Governmental financial resource. The Ministry of Finance stated the reason for the expenditure were traditional capital expenses at the end of the year as well as BGN 1.2 billion from the budget surplus assimilated by decision of Parliament. The Bulgarian Energy Holding and the Bulgarian Development Bank have had the greatest share of the fiscal reserve.
Source: Trud (06.01.2009)

Bulgaria Crashed by the Gas War The gas war shoveled Bulgaria into a freezer. This country has happened between the blows Moscow and Kiev are exchanging. Without a warning yesterday at 3:25 a.m. the gas supply for Bulgaria was stopped. This stirred panic in the whole country. The heating companies en masse decreased the supply for homes and offices. Schools, hospitals and nurseries remained in the cold. People rushed to buy electrical heaters. The big consumption of electricity led to breakdowns in the electricity network. Half of Sofia was switched off in the early afternoon. Electricity supply restrictions are inevitable if the central heating is stopped everywhere, sources from the National Electric Company informed. Bulgaria's Prime Minister, Sergey Stanishev urgently summoned his ministers to find way-outs of this crisis.
Source: Standart (07.01.2009)

Bulgaria's Energy Minister: Gas Crisis Will Be over In One Week Bulgaria's Energy and Economy Minister Petar Dimitrov stated that the gas shortage caused by the Russia-Ukraine price dispute would be over in a week. Dimitrov made this statement after his meeting with representatives of sixty large Bulgarian industrial consumers of natural gas, during which he informed them of the measures to restrict gas consumption. The Bulgarian government is introducing austerity measures in natural gas consumption starting at 8 am on Thursday, January 8, after the country was cut off from the Russian gas supplies early Tuesday morning. The industrial consumers have expressed their concerns that some plants might have to be shut down because of the natural gas shortage. Dimitrov himself announced that Bulgaria's chemical industry would suffer the most from the lack of gas.
Source: Darik Radio (08.01.2009)

Mass bankruptcies because of the gas crisis Bulgarian companies may hit the rock bottom because of the gas crisis as many of the installations operate only with the blue fuel, said the head of Confederation of Employers and Idustrialists in Bulgaria, Evgeny Ivanov. According to him the losses each day reach half a billion. In the next few days several of the leading metallurgical companies in the country may go bankrupt, said the CITUB union leader Vassil Yanachkov. They are Stomana Industry SA in Pernik, Promet in Bourgas, Shoumen-based Alcomet, Sofia Med and Steelmet in Sofia. Only a few installations operate on gas at Kremikovtzi, however, the supply as at minimum and in case of further decrease of the gas supply, emergency situations and ecological crisis may occur, the union said.
Source: Novinar (08.01.2009)

Bulgaria to import gas from Turkmenistan, Azerbaijan and Egypt Construction of an intersystem 70-km connection from Comotini to Dimitrovgrad would allow Bulgaria to use the negotiated gas supplies from Turkmenistan, Azerbaijan and Egypt. This option was discussed at the National Security Consultancy Council, called by the president Parvanov. According to him, the pipeline may be constructed either entirely by national funds, ot by European program financing or public-private partnership. An option for a terminal for liquified gas in Greece was also discussed.
Source: Novinar (08.01.2009)

President Parvanov: Bulgaria Can Survive 100 Days Bulgaria can survive the gas crisis for 90 to 100 days applying restrictions and without cutting off electricity and central heating, said yesterday president Parvanov after the meeting of the National Security Consultative Council. He explained that all recourses in the country have been mobilized, as the production of Galata and Chiren natural gas deposit supply daily 4 million cubic meters of gas. Parvanov added that all authorities agreed Bobovdol thermal power plant to be set in operation soon. Bulgaria's President pointed out as priorities Nabucco and South Stream pipeline projects. "Bulgaria needs alternative fuel sources and it needs to build a terminal for liquefied gas from Egypt and Qatar", added the president. He added that the pipeline Turkey - Greece should have an extension connecting it with Bulgaria. Both projects can be financed by EU funds and public private partnership, explained Parvanov. PM Stanishev has already raised the issue in a telephone conversation with the president of the European Commission Jose Manuel Barroso.
Source: Standart (08.01.2009)

Dubyna: Bulgaria to be First to receive Gas when Supply is Restored When Russia restores the natural gas supply, the first volumes would be sent to Bulgaria, the CEO of the Ukrainian "Naftogaz" Oleh Dubyna stated on Wednesday. The statement, quoted by the Bulgarian information agency BGNES, came as a reply to a question asked by the Bulgarian Member of the European Parliament (MEP) Vladko Panayotov. Panayotov spoke during the meeting of the Foreign Policy Commission at the European Parliament in Brussels. The MEP described the emergency situation in Bulgaria with schools closed over the lack of heat, chilly hospitals, and women, children and elderly people in dire need as in time of war. The Ukrainian CEO explained that the technology time frame required to resume regular gas supply was 36 hours, adding that he hopped that experts could shorten the period.
Source: Standart (09.01.2009)

EU Lends Shoulder to Bulgaria The entire European Union is firmly supporting Bulgaria in the critical situation caused by the halt of the natural gas supplies. In a declaration adopted at an informal meeting of the EU foreign ministers attended among all by Bulgaria's No. 1 diplomat Ivailo Kalfin it was emphasized that the issue equally concerns all EU member states and the EU will not leave any of its citizens in trouble. The participants were unanimous that Bulgaria is most severely hit by the gas supply cutoff. This is the reason why Ivalo Kalfin was the first to take the floor at the meeting. The signees of the declaration appeal to Russia and Ukraine to resume supplies without further delay. The EU is prepared to send independent observers to Ukraine. EUR five billion are allotted for establishing connections between gas consumers, suppliers and transit countries. Bulgaria has two projects aimed at connecting its national energy systems with Greece and Romania. However, the EU may provide financing only under one condition - Bulgaria should be prepared to table them within a month.
Source: Standart (09.01.2009)

EU Says Economic Damage From Gas Cuts Very Significant Europe is suffering "very important" economic damage due to the cuts in Russian gas supplies through Ukraine, a European Comission spokesman said Friday. "It's certainly very important but (there is) no estimation at this point in time," European Commission spokesman for energy issues Ferran Terradellas told journalists when asked about the economic fallout of the cuts. "We will have a clearer picture in the coming days," he added.
Source: Darik Radio (09.01.2009)

Russia to Resume Gas Supply Tomorrow, Europe will take a breath as Russian gas is expected to start flowing towards the Old Continent again. The resumption of Russian supplies was made possible after Ukraine signed a protocol with Russia and EU for accepting international monitors. They will inspect the gas transit through Ukraine, Reuters informed. The agreement was reached late on Saturday after Czech PM Mirek Topolanek, whose country currently holds the rotating EU presidency, had shuttled between Moscow and Kiev. "Russia would resume the gas supplies after the international observers arrive at the locations. This is expected to happen within hours and most probably in 36 hours all European countries would have Russian gas," Topolanek said Saturday. However, Gazprom assured that the supplies might be resumed immediately after the observers arrive and promised that the Balkans would be the first to receive gas. The observers will report to Kiev, Brussels and Moscow. Meanwhile Gazprom stated that the company already suffers severe losses caused by the gas row totaling $120 million daily, 'Vedomosti' daily (Russia) informed yesterday.
Source: Standart (12.01.2009)

Gas from Ukraine Is an Illusion Ukraine won't supply gas to Bulgaria from its own reserve as it was agreed a day before, minister of economy Petar Dimitrov unexpectedly announced yesterday yearly afternoon. On Saturday Bulgaria's President Georgi Parvanov and his Ukrainian counterpart Victor Yushchenko agreed in a telephone conversation Kiev to supply gas to Bulgaria from its own reserves supplying 2 million cubic meters gas daily till the end of the crisis. The proposal of Naftogaz was to transit the gas via Romania. Experts explained yesterday that because of the uncompleted 30-km-long pipeline between Russe and Giurgiu there's no way to pump gas to Bulgaria. The problem is that Ukraine doesn't have the amount needed to fill the pipeline. Over 25 cubic meters of gas are needed, specified minister Dimitrov.
Source: Standart (12.01.2009)

Gaz de France Ready to Supply Bulgaria with Gas through Greece The French Ambassador in Sofia Etienne de Poncins announced Monday Gaz de France was ready to supply Bulgaria with liquefied natural gas through a terminal in Northern Greece. His Excellency pointed out Bulgaria should not rely solely on one gas supplier, and gave as an example France, which used gas from Russia, Norway, and Algeria. In his words, the liquefied natural gas was transported to Northern Greece, and it could easily be transited to building if a connection was built between Bulgaria and the Greek gas network. De Poncins said it was urgent for Bulgaria to be linked to Greece. He reminded that in 2008 Gaz de France and Bulgargaz signed a framework cooperation for agreement, which, however, did not include any details. The Ambassador did point out, however, that GDF was ready to work with Bulgargaz in order to build the necessary pipeline connection. His Excellency spoke at a special press conference during which he announced the program of the French Embassy for the celebrations dedicated to the 20th anniversary since the visit of the French President Francois Mitterand in Bulgaria on January 18-19, 1988.
Source: Darik Radio (13.01.2009)

Bulgaria's PM Urgently Visits Russia Bulgaria's PM flies for Moscow this morning to have talks with his Russian counterpart Vladimir Putin. Putin phoned Stanishev yesterday afternoon and invited him to Moscow. He also told Stanishev that Russia had resumed the supplies of natural gas for Europe but, to his words, gas had not been transited through Ukraine because their transportation system was not functioning. Putin added that Ukraine should take the necessary actions to ensure a proper transit of the Russian natural gas to the European consumers. During his one-day working visit to Moscow Stanishev will be accompanied by Economy and Energy Minister Petar Dimitrov, his deputy, Galina Tosheva, and Bulgarian experts, who will control the transit of Russian natural gas through the territory of Ukraine.
Source: Standart (14.01.2009)

Standard and Poor’s has supervised the rating of National Electric Company (NEC). The reason for the decision is the lack of information on the financial situation of the Bulgarian Energy Holding (BEH), of which NEC is a part. In 6 weeks Standard and Poor’s expects to receive more data that would allow it to decide whether the rating of the NEC will be changed. By the rating agency indicated that the credit ratings of other units in BEH - Mines Maritsa Iztok, TPP Maritsa East 2 and NPP Kozloduy may not be as high as the rate of NEC, which could decrease the entire rating of the energy holding.
Source: Dnevnik (14.01.2009)

Bulgarian MPs Want to Restart NPP Kozloduy's Reactors All fifteen members of the Energy Committee in the Bulgarian Parliament agreed on the restart of NPP Kozloduy's power units 3 and 4, which were shut down two years ago. Their proposal was supported by their colleagues from the Foreign Affairs Committee and the Committee on Energy Issues. "It is now the time to quote article 36 of Bulgaria's EU Accession treaty, which allows the restart of the nuclear reactors," MPs say. Three independent proposals for the restart of the decommissioned facilities were heard at an extraordinary sitting of the Energy Committee. All members of the Bulgarian Parliament share the opinion that power units 3 and 4 of NPP Kozloduy meet all safety standards of the European Commission and in that they are just as good as any West European facilities of that kind. However, none of the proposals was voted. This will probably happen today, during the regular sitting of the Committee, when Economy and Energy Minister Petar Dimitrov will also be given the floor. Towards the end of the sitting, the members of the Energy Committee agreed that they should make a common proposal for the restart of the shut down reactors 3 and 4 of NPP Kozloduy. Energy Committee Chairman Ramadan Atalay says such a proposal could be voted today and put forward for discussion in Plenary Hall tomorrow.
Source: Standart (14.01.2009)

Greece and Turkey to Help Bulgaria With Gas Bulgaria's southern neighbours Greece and Turkey are ready to help Bulgaria deal with the gas crisis. An agreement with Athens was reached to supply 2 million cubic meters of gas daily, minister of economy Petar Dimitrov announced. Greece's gas supplying system has been connected to Turkey's system, which allows Greece to receive supplies both from Azerbaijan and Russia via "Blue Stream" pipeline. According to minister Dimitrov the gas supplies can be received through the pipeline connecting Russia and Greece via Bulgaria. The amount of 2 million cubic meters is just one sixth of Bulgaria's daily gas needs - 12 million cubic meters on the average. Liquefied gas can be supplied at Revitusa gas station near Athens, added Petar Dimitrov. He has already hold talks with his Greek and Turkish counterparts as Turkey is also ready to help Bulgaria. The financial aspect of the deal between Bulgaria and Greece is still under negotiations. "So, Bulgaria's government is managing well the situation", stated minister Dimitrov.
Source: Standart (16.01.2009)

Bulgaria Imports Greek Gas Yesterday at 04:00 p.m. gas flowed from Greece to Bulgaria, reported the Bulgarian Ministry of Economy and Energy. The supply started from the Greek station of Strimonohori and the tap was turned in the presence of representatives of Bulgartransgaz and the Greek gas company DEPA. The initially contracted amounts of gas will be increased. The contract was concluded for a supply of gas within a week with the option this period to be lengthened or reduced depending on whether the gas supplies from Russia will start for Bulgaria. The Ministry of Economy cannot still answer how much Bulgaria would pay for the Greek gas. According to informed sources, the price would be higher than that of the Russia gas because the liquefied gas at the world markets is more expensive. Nevertheless the situation would be clear after Bulgargas CEO, Dimitar Gogov returns from Athens where he is to sign the contract with his Greek counterpart from DEPA, Asimakis Papageorgiou.
Source: Standart (20.01.2009)

Russia and Ukraine Sign Gas Transit Agreement Russia and the Ukraine have reached the agreement for the supply of Russian gas to Europe via the Ukraine, the Russian information agencies report Monday afternoon. The agreement has been signed by the CEO of the Russian energy giant "Gazporm" Alexei Miller and his Ukrainian counterpart - the CEO of "Naftogaz" Oleh Dubyna as well as by the Prime Ministers of the two countries - Vladimir Putin for Russia and Yulya Timoshenko for the Ukraine. Putin, quoted by the Russian information agency ITAR-TASS, stated at the meeting's conclusion that "Gazprom" has received an order to begin immediately Russian gas transit trough the Ukraine in all European directions. Timoshenko, on her part, declared that the Ukraine was to begin delivering gas to European consumers right after the first volume reached the pipes in the Ukraine. The European Commission (EC) immediately issued a declaration regarding their reaction to the signing of the Gazprom-Naftogaz gas contract, saying that the EC "notes the signing of a ten year contract between Gazprom and Naftogaz in the presence of Prime Minister Putin and Prime Minister Tymoschenko in Moscow this afternoon." "We now need an indication of the precise time that gas deliveries will be resumed. Our monitors will verify when the gas actually starts to flow," the statement concludes.
Source: Darik Radio (20.01.2009)

Bulgarian Energy Holding SPJSC - Sofia has appointed Extraordinary Meeting on 19.01.2009. Meeting agenda includes: changes within the management bodies.
Source: Registry Agency (20.01.2009)

Over BGN 169 million losses from the gas crisis The losses, calculated by companies up to the present day, are about BGN 169 263 699. This was announced by the Economy Minister, cited by BTA. These are the direct losses, which different companies incur, the Minister specified. By the end of the day the Crisis headquarters will choose the consumers, which have the greatest need of receiving natural gas. Now the big question is that Russian gas flows in the network, so that we can release bigger quantities to consumers. Gas is most urgently needed in fertilizer and metallurgical factories, Dimitrov added. Among the consumers, who urgently need an increase of deliveries, are the companies "Stomana" (Pernik) and "Agropolichim", as well as some greenhouses and animal farms, in which there is a heating crisis. Dimitrov added that starting tomorrow morning the regime of gas will be changed, so that the industrial consumers in greatest need receive more blue fuel. The Minister specified that for now central heating companies can continue working on black oil, because if natural gas is delivered to them, the needs of the industry will have to be limited, which is not a good idea.
Source: news.bg (21.01.2009)

The head of Bulgargaz Dimitar Gogov and the Deputy Minister of Economy Galina Tosheva will be a part of the Bulgarian Energy Holding board of directors. Other members of the board will be Dimitar Dimitrov, head of the board of directors of Bulgargaz, Boris Petkov – CEO of the state-owned Radioactive Waste and Tencho Popov, a financial consultant and ex-chief secretary in the Ministry of Finance. Deloitte Bulgaria consulted the officials in the Ministry of Economy during the election of the board members. The board of directors will control, organize and manage all activities of the mega holding.
Source: Novinar (21.01.2009)

Gas crisis costs Bulgaria BGN 170 mln The Bulgarian economy suffered losses in the size of BGN 170 million since the outbreak of the gas crisis until yesterday. The losses have been calculated on the basis of information received at the crisis HQ from the affected companies. Provided that Bulgaria's average consumption of natural gas is about twelve million cubic meters a day, during the gas crisis about 180 million cubic meters of natural gas just failed to reach the consumers in the poorest EU country during the gas dispute between Moscow and Kiev. It is still unclear who is to compensate the Bulgarian companies for their losses. "We received a letter from Gazprom which reads that Kiev is to blame for the gas crisis and we should seek compensations from Ukraine's Naftogaz," said Bulgaria's Economy and Energy Ministry Petar Dimitrov. Naftogaz replied that they had not received such a letter and therefore they declined to comment the question. "We can claim additional supplies of natural gas at an eight-percent discount from the market price," Minister Dimitrov said. "It is uncertain whether Gazprom would agree to a new direct contract, but probably the formula for the prices of the natural gas that we receive from Russia may be reconsidered," Bulgargaz Director Dimitar Gogov said. Claims may also be filed to the suppliers of natural gas. According to PM Sergey Stanishev, the supplies of natural gas from Russia should first be fully restored so that the companies start operating normally and only then could the losses from the gas crisis be accurately calculated. Given that Russian gas reached Bulgaria at 09:05 a.m. yesterday, the calculations can be made within twenty-four hours.
Source: Standart (21.01.2009)

Gas War Binds Balkans Countries Together The gas crisis demolished to pieces one of the most persistent historical myths about the Balkans - that the peninsula is Europe's Powder Keg and populated by morose and wild barbarians. History has its good reasons. In these harsh days, however, when the Balkan countries faced a common problem, they acted in a way that put the rest of Europe to shame. While Brussels was wondering what steps exactly to take, on the 'powder keg" Balkan governments behaved like real Europeans. Despite its own serious economic problems, Hungary helped Serbia with natural gas, in spite of the thousands of years of bitter hatred between the two states. On their part Serbia pumped gas into the mostly Muslim Sarajevo. This gesture came as a positive shock for the local people as they keep too fresh memories of the massacres in Srebrenica and Gorazde. The same holds true for Romania and Bulgaria. Romania offered Bulgaria mazut and Greece forgot about old misunderstandings and differences and signed an urgent gas supply contract at first approach. No matter Greece's gas reserves are not exactly profuse. We shall wish that these kind neighbourly relations would become a practice and the west should stop considering us a second class Europeans.
Source: Standart (21.01.2009)

Ukraine: Sofia should sue the suppliers "Ukraine has not signed any contracts with Bulgaria for the supply of natural gas on the grounds of which it could be brought to court,' Vitaliy Peychev, Press Attache for Ukraine's Ambassador in Sofia Viktor Kalnik, said yesterday. "Bulgaria has no legal grounds to sue Ukraine, because we do not know the countries for which the natural gas that we transport is meant. Gazprom issues all supply orders. You should file claims against the companies with which you have signed contracts for supply of natural gas,' he went further. Mr. Peychev quoted Commissioner for Energy Andris Piebalgs saying that Ukraine has not stolen a single cubic meter of natural gas since January 1 and that Russia's claims that gas disappears in the territory of Ukraine are absolutely groundless.
Source: Standart (22.01.2009)

Bulgaria to Demand Compensations from EU over Gas Crisis "Bulgaria may demand compensations from the EU due to the gas crisis. This will become possible if the losses to Bulgaria's economy due to the cut gas supplies exceed 0.6% from this country's GDP," informed Bulgaria's Minister of Economy and Energy Peter Dimitrov in the Parliament. Minister Dimitrov explained that according to the EU practice in case the losses of a certain EU member state reached such sizes this would mean a crisis. Then, the EU renders a joint help. According to the latest data of the crisis staff with the Ministry of Economy and Energy, so far Bulgaria has calculated losses of nearly 200 million levs. Bulgaria's GDP for 2009 is expected to reach 73.48 billion levs which means that in case the economic losses total 440 million levs, Bulgaria may demand compensations from the EU.
Source: Standart (23.01.2009)

PM Stanishev: Bulgaria needs a clever plan for NPP Kozloduy "Our arguments in favour of the restart of NPP Kozloduy power units 3 and 4 should be presented before the European Commission very cautiously and cleverly," Bulgaria'0s PM Sergey Stanishev said in the town of Rousse on the Danube. To his words, Bulgaria should not leave the EU with the impression that it acting out of spite. Rather, we should take into consideration the clauses and conditions provided in the EU accession treaty. "The analysis of our experts should be very precise, as the European Commissions chief argument is that the gas crisis is over. However, it is equally true that the Russia-Ukraine relations are quite unstable, despite the agreement that the two countries signed," Mr. Stanishev said. "And it is this instability that gives the Bulgarian government a reason to request a temporary restart of Kozloduy nuke's decommissioned power units," he went on.
Source: Standart (26.01.2009)

Gas Crisis Makes Nabucco Project Popular The gas crisis has made the Nabucco pipeline project extremely popular. The row between Ukraine and Russia left half of Europe without natural gas and the interest in the project that is meant to make the European citizens less dependent on Gazprom's mercy has grown. Representatives of all countries through which the pipeline is planned to pass - Bulgaria, Turkey, Romania, Hungary and Germany, which joined last, as well as representatives of the companies that are partners in the Nabucco Gas Pipeline International GmbH Consortium - Bulgargaz, BOTAS, Transgaz, MOL, OMW and RWE - have gathered in Budapest. Today they will discuss options to speed up the implementation of the pipeline project, which is expected to cost about ten billion euro and will have an annual throughput capacity of up to 31 billion cubic meters of natural gas. The pipeline will be three thousand kilometers long, four hundred of which will be in the territory of Bulgaria, and will supply natural gas to Southeast and Central Europe.
Source: Standart (27.01.2009)

NEK will develop wind-energy business State-owned Natsionalna Elektricheska Kompania SPJSC (NEK) will enter the business with wind-generated electricity, which guarantees high profits. NEK will invest in the construction of 3 wind parks of total power 72 MW south of Krumovgrad through the Bulgarian-Greek company Neko. It is registered in Athens in 2002 and has a capital of EUR 60 thous. NEK owns 50% of its shares and the rest are divided between the Greek companies Prometeas Gas and Damko Energy. The latter is owned by the energy group Kopelousos. NEK plans on constructing the wind park Chernichevo – 20 MW, Taushan Tepe – 26 MW and Tumbata – 26 MW. They would have totally 36 generator vanes. The installations would start operations in January 2010. Electricity from wind power plants is 4 times more expensive than the NPP-generated – it costs BGN 185.95 per MW.
Source: Trud (28.01.2009)

EU Says 'No' to Nabucco Financing The European Union does not consider financing the Nabucco pipeline project. Reuters quotes European Energy Commissioner Andris Piebalgs saying that the European Union should not consider providing the Nabucco gas pipeline capital financing but it could provide loans and guarantees. Reportedly, this became clear at the conference in Budapest, attended by Bulgaria?s PM Sergey Stanishev. According to a publication, the European Investment Bank is ready to consider a financial contribution to the Nabucco project in the size of a quarter of its total cost. The author quotes a statement that EIB Director Philippe Maystadt made at the forum in Budapest. To be granted a loan, however, the project should meet all technological, political and economic criteria, and Mr. Maystadt also requires an intergovernmental agreement. Reportedly, EBRD has also shown interest in financing Nabucco. 'Nabucco gained considerable importance after the gas crisis. It will provide an alternative to the gas supplies from Russia, connecting Europe to the natural gas producers in the Caspian region and the Middle East,' PM Stanishev said at the forum.
Source: Standart (28.01.2009)

Bulgaria Expects 1 B cum of Gas from Azerbaijan Some 1 billion cubic meters of gas coming from Azerbaijan may start flowing into Bulgaria from next year, Bulgaria's PM Sergei Stanishev and the President of Azerbaijan Ilham Aliev agreed upon. As of the next week, the gas companies of the two countries will start additional negotiations. Gas from Azerbaijan may be supplied to Bulgarian and Greece even this year in case an agreement for transit is reached with Turkey. Tuesday evening, the project for linking Bulgaria's gas transit network with those of Greece and Romania, received a substantial support during the sitting of the Council on General Affairs and External Relations with the EU. Thus, the project may be financed with part of the 5 billion euro with which the EU intends to compensate the aftermath of the financial crisis within the Union.
Source: Standart (28.01.2009)

No clauses for gas compensations for Bulgaria This is clearly stated in the additional agreement signed at the end of 2006 between Overgas and Bulgargas, worked out by ex-minister of energy Rumen Ovcharov. The quantity in question is over 1.4 billion cubic m annually, which the country has received since 2007. This means that the existing clauses for 4% or 8% discount in the price, which the country hoped to get, are not valid for these quantities. Overgas denied this information without presenting any facts to prove the opposite. The quantities mentioned are the greater part of the total 2.5 billion cubic m per year of Overgas supplies. According to an additional agreement signed in May 2007, the quantities decrease until 2010 from 6.600 billion cubic m to 2.5 billion cubic m including the gas on preferential price, which by 2012 should reach market values. It is these 1.4 billion cubic m gas, which Bulgaria received at preferential price that cost USD 305.68 per 1,000 cubic m for the fourth quarter of 2008, Pari daily learned. The remaining part to 2.5 billion cubic m cost USD 503.79 per 1,000 cubic m. In its corrective statement Overgas says that natural gas price is USD 321, which in fact is the average figure and it by no means refutes the data published in yesterday’s issue of Pari daily.
Source: Pari (29.01.2009)

Bulgaria's President: We Insists on No Contracts with Mediators "During his visit to Moscow, President Georgi Parvanov will insist on a new contract with Gazprom," Bulgargaz CEO Dimitar Gogov said. Gogov added that Parvanov would directly refer Bulgaria's demands to Gazprom Vice President Alexander Medvedev. "President Parvanov will require supply from Gazpromexport alone, as it is the only company directly related to Gazprom. Currently, Bulgargaz has contracts with two other mediators Overgas Inc. and Wintershall. We'd also demand a better-guaranteed supply, just as we provide bank guarantees for our future payments. Thirdly, we'd insist on a contract that would expire in at least ten years," Gogov explained. Bulgaragaz has lost BGN 110 million over the January gas conflict between Ukraine and Russia. "We have notified the Ministry of Economy and Energy's ad hoc committee on the gas crisis of the figure," Gogov announced. The company has incurred direct losses for USD 20 million out of unsupplied quantities as well as another BGN 80-million losses out of future earnings. Bulgargaz will hold that the unsupplied quantities be delivered in the future at better financial conditions. The company is also due to notify every one of its three suppliers - Overgas, Gazpromexport and WIEE-Zug - of its claims.
Source: Standart (04.02.2009)

Bulgaria to Negotiate Transit of Asian Gas with Russia Bulgaria will insist before Russia that pipelines of 'Gazprom" be used to transfer fuel from Asia, a member of the delegation accompanying Bulgaria's President Georgi Parvanov on his visit to Russia said. The negotiations will be on the transit of 1 billion cubic meters gas that Bulgaria has already negotiated with Azerbaijan, Turkmenistan and Uzbekistan. The former Soviet republics stipulated that Bulgaria had to negotiate the transit with Russia. Bulgaria will ask for gas compensations due to the gas crisis, caused by the suspended gas supply in January.
Source: Standart (04.02.2009)

The Bulgarian Energy Holding (BEH) intends to establish a subsidiary with an investment objective to take the implementation of the projects for renewable energy that are currently in the plans of another subsidiary - the National Electricity Company (NEC). This was announced by Galina Tosheva, Executive Director of BEH. It is expected the investment company to be formed by the end of 2009 - early 2010 and to start with the wind projects of NEC near the southern border. The hydro power plants, however, will remain in the structure of NEC as they are critical for the energy balance of the country, added Tosheva.
Source: mediapool.bg (04.02.2009)

Moscow Feels Twinges of Guilt about Bulgaria The Russian-Ukrainian gas conflict that had affected Bulgaria has changed the 'ceremonial' agenda of president Parvanov's visit to Russia. A source from the Kremlin emphasized that Moscow "would rather not jeopardize the particularly friendly relations with Sofia because of the January events." It seems that the Russian part feels twinges of guilt about Sofia and it might be helpful to the Bulgarian delegation in the negotiations on obtaining some concessions. Based on Russia's example, Bulgaria has been considering the possibility to get rid of the mediator companies 'Wintershall' and especially 'Overgas Inc' ('Gazprom' owns shares in both companies). According to the Kremlin source, Russian authorities do not oppose the direct gas supply "if 'Gazprom' and 'Bulgargas' agree on the commercial conditions." Meanwhile it is obvious that the Russian monopolist is not ready to give up the mediators. Most probably 'Gazprom' would avoid financial compensations and would prefer additional gas supply for the consumers and for the emptied gas depots of "Bulgargas'. However, authorities in Sofia count on complete reconsidering of the gas supply plan, harmonized in 2006, within the framework of the political dialog.
Source: Standart (05.02.2009)

Parvanov: Bulgaria will again be energy centre on the Balkans Bulgaria will regain its position as the energy centre on the Balkans, just as it was before Units 3, 4 of the Kozloduy nuclear power plant were decommissioned. This will happen after the construction of the new nuke in Belene is completed, Bulgaria President Georgi Parvanov said during the premier of his book "Bulgaria in the Global World" in Moscow. The President arrived in the Russian capital for a three-day official visit yesterday. Parvanov reminded that before the two units were closed in compliance with the EU accession treaty Bulgaria made up for 50 percent of the power deficit in the Balkan region. He also said that the Belene project involves Russia, although it is also a pan-European project because Bulgaria is an EU member and several European companies will take part in its implementation.
Source: Standart (05.02.2009)

Bulgarian Energy Holding posts BGN 154m pre-tax profit Bulgarian Energy Holding, the mega structure bundling the country’s major energy assets, booked a pre-tax profit of BGN 154 million for 2008, under preliminary data. The main contributors were the state-controlled power company NEK, coal-fired power plant Maritsa East 2 and nuclear plant Kozloduy. Another shot in the arm were the higher electricity prices. The structure, which was set up last summer, brings together the country’s biggest coal-fired power plant, the state-owned Maritsa East 2, coal miner Maritsa East, Kozloduy nuclear plant, state-run gas distributor Bulgargaz, Bulgartransgaz, telecom services provider Bulgartel, national power grid operator NEK and the Electricity System Operator. BEH said it expected profit will increase to BGN 471 million in 2009, and revenue will gain BGN 292 million to BGN 5.9 billion. The structure’s long-term bank debt totaled BGN 1.7 billion, but new loans will be sought to back a BGN 2 billion investment plan. Bulgargaz swung to a loss of BGN 118 million from a pre-tax profit of BGN 90 million in the previous year, blaming high gas prices and costly delieveries from Gazprom. Kozloduy NPP turned out to be the gem in the structure, posting a record-shattering profit of BGN 81 million against a BGN 27 million target. The growth was driven by buoyant sales on the deregulated market, where the plant sells 40% of its output.
Source: Dnevnik (05.02.2009)

Kremlin moots buy of Bulgaria Overgas stake Gazprom weighing a proposal to buy all or some of Bulgargaz’ stake in Overgas Inc, one of the firms that ship gas to Bulgaria, reported Russian daily Vremya Novostei, quoting an unnamed Kremlin source. Gazprom vice-president Alexander Medvedev, who also heads Overgas’ board of directors, hinted at a possible deal at a Sofia visit two weeks ago. Gazprom and Gazpromexport hold a combined share of 50% of Overgas Inc’s capital, the remainder in the hands of private investors grouped in Overgas Holding. London-based DDI Holdings Limited is majority shareholder in the holding company with a 98.1% stake. Executive director Sasho Donchev has s 0.37% interest, and the rest is equally split between Nikolov Invest SPJSC and Ivan Todorov, accorording to the commercial register.
Source: Dnevnik (05.02.2009)

Parvanov Negotiates Gas Supplies without Intermediaries Bulgaria's gas company Bulgargaz will be supplied with Russian natural gas without intermediaries. This was negotiated yesterday in the Kremlin between Bulgarian President Georgi Parvanov and his Russian counterpart Dmitry Medvedev. The two talked for about an hour and a half, far longer than initially scheduled. Medvedev and Parvanov also agreed to speed up the South Stream pipeline project. To Mr. Medvedev's words, the pipeline's throughput capacity may also be increased. 'Bulgaria has always worked hard and will continue working towards the implementation of this project,' Mr. Parvanov said. He underscored that the Nabucco pipeline project that is to be realized in cooperation with the EU, was also of equal importance. The two heads of state agreed that guarantees that the gas crisis will not repeat itself are needed. Mr. Medvedev proposed two options against future gas problems, the first involving the establishment of international legislation aimed at preventing a future halt in the gas supplies, and the second involves diversification of the gas routes to Europe. Mr. Parvanov expressed his satisfaction with the talks, adding that the problems can be solved at an international forum on energy issues, scheduled to take place in Sofia at the end of April. Mr. Medvedev said once again that the construction of NPP Belene was of great importance and added that the project would be completed on time.
Source: Standart (06.02.2009)

Medvedev: Bulgaria should ask compensations from Ukraine Russia's President Dmitry Medvedev agreed Bulgaria had been worst affected by the gas crisis. "The whole blame for the suspended gas supply falls on Ukraine and due to this financial compensations should be sought from Ukraine," President Medvedev stated. Medvedev added that Russia would strictly follow the observation of the new contract with Ukraine.
Source: Standart (06.02.2009)

Gas Price to Fall by 12 percent 'Bulgargas' proposes the price of natural gas to drop by nearly 12 per cent as of April 1. "The decrease will be 11,56% which means that from $399 per 1000 cubic meters it will drop to $338," Bulgaria's minister of economy and energy Petar Dimitrov announced. Later the Bulgarian gas company also announced the proposed new price. The proposal will be submitted to the State Energy and Water Regulatory Commission on March 11. 'Bulgargas' explained that in case of market changes there might be a different price at that time. The drop in gas price will let Bulgarian enterprises and power plants that suffered substantial losses from the economic and gas crisis, to take a breath. However, prices of central heating will hardly fall before the end of the season. "We are still expecting Russia's, and, in particular, 'Gazprom's decision on the possible compensations for the suspended gas supplies in January. We are expecting compensations for Bulgaria's real economy that suffered losses from the gas crisis besides the undelivered amounts of gas on a lower price," added minister Dimitrov.
Source: Standart (10.02.2009)

Gas Pipeline to Connect Bulgaria and Greece The preliminary work on a project for a gas pipeline meant to connect Bulgaria with Greece gas transit system is scheduled to begin in three month?s time. The news has been spread by the town administration of Kurdzhali in southern Bulgaria. The results of the analyses should be announced by October. The total cost of the project has not been calculated yet, but it is expected to reach 100 or 120 million euro. The preliminary works involve mapping out the pipeline?s technical parameters and estimating its possible impact on the environment. The pipeline will be 150 km long, 125 of which will pass through Bulgarian territory. The pipeline is planned to begin at the Greek town of Komotini, passing through the Bulgarian towns of Momchilgrad, Kurdzhali and Haskovo, and end in the town of Dimitrovgrad. The executor of the preliminary research work is to be selected by a public tender, sources from the Bulgarian Energy Holding said.
Source: Standart (10.02.2009)

Bulgaria Expects US$1 Billion US Investments "Bulgaria expects investments of US$1 billion in two projects of US companies this year. This is quite important in times of world financial crisis," Bulgaria's Minister of Economy and Energy, Peter Dimitrov, stated. Minister Dimitrov will have a meeting with a team of the General Electric that are ready to invest 800 million euro in a wind farm in Bulgaria. Energy company AES is willing to invest 240 million euro. "Bulgarian media do not want to believe me, but according to a report of the United Nations Committee on Trade and Development (UNCTAD), Bulgaria occupies second place in the world in terms of favorable investment climate after Hong Kong," Minister Dimitrov added. Minister Dimitrov also said he expected a deal for cigarette producer Bulgartabac by the summer.
Source: Standart (10.02.2009)

Russia Eager to Possess Bulgarian Gas Transport Network "Bulgaria explicitly disagrees with the notion the South Stream gas to be transported via the existing gas transportation system in Bulgaria," the Minister said at a public discussion of the state energy strategy to 2020. "We consider the future pipeline as an alternative route to the currently existing one," Bulgaria's Minister of Economy and Energy, Petar Dimitrov, said. Minister expressed disappointment that the pipeline route under the Black Sea to Bulgaria was not specified. "This must have happened during the visit of President Parvanov in Moscow from February 4 to 6th. Reportedly the Russians wanted to increase the transited amounts of gas. This, though, would totally waste the transport systems in Bulgaria," Petar Dimitrov explained. The Russian access to the Bulgarian pipes via South Stream would allow Gazprom implement its long-cherished intent to gain possession over the Bulgarian pipes, experts commented. The project envisages that both parties in the Bulgarian-Russian joint venture would possess 50% of the pipes. For the time being the company has not been established because of discords on the choice of contractor for the pre-project survey, Dimitrov explained.
Source: Standart (12.02.2009)

Burgas-Alexandroupolis oil pipe faces one-year delay Groundbreaking on the Burgas-Alexandroupolis oil pipeline will be put off by a year over a delay in the development of the Kashagan field in Kazakhstan and disagreements between Bulgaria, Greece and Russia, Gazeta.ru reported. Speaking to Dnevnik, Stefan Gunchev, board chair of the Bulgarian project company, said building works were scheduled to begin this year, with the design due by end-July and the environmental impact assessment expected in the next year. The project is going by schedule at the moment, he added. Bulgaria holds 24.5% in the oil pipeline project through state-run companies Technoexportstroy and Bulgargaz. A further 24.5% stake belongs to Greece, with the remainder controlled by Russia. Russian analysts pointed to the ongoing financial crisis as one factor for the delay, but added another portion of the blame should be laid at the door of oil companies, which failed to assess the complexity of the project. Despite its geopolitical importance, the Burgas-Alexandroupolis is not high on Russia’s to-do list. Moreover, the pipe’s future operator, Transneft, is focused on Eastern Siberia and the Baltic Pipeline System-2, which will carry 50 million of oil annually from West Siberia to the Gulf of Finland.
Source: Dnevnik (13.02.2009)

Bulgarian electric power market had to be liberalised in the middle of 2007 after the country had undertaken some responsibilities as EU member. Principally, this happened on paper. In fact, a lot of restrictions are still active on electricity market hindering real liberalisation. The main obstacle are the so called preferential or regulated prices, which State Energy and Water Regulatory Commission (SEWRC) introduced for household consumers and small companies as a way to protect vulnerable consumers that cannot pay the expensive electricity. As the country has not followed the rules, two weeks ago EC sent a warning letter in which Brussels puts the question about the specific measures the country is undertaking for the real opening of energy market otherwise the country will be sued in the European Court in Luxemburg. According to ministry of economy and energy, SEWRC is responsible for the implementation of EU requirements. SEWRC told Pari daily that decisions could not be taken for two days. Ex-deputy minister and present chairperson of Bulgarian Energy Holding Galina Tosheva said the market in the country was unique. If the quota from the regulated market are abolished, price of electricity will jump considerably, Ivan Genov, director of Kozlodui nuclear power station commented. In this way, electric power producers will export electricity as the price abroad is higher thus leading to power deficit in the country.
Source: Pari (16.02.2009)

Gaz de France eyes Balkan market French energy company Gaz de France Suez is eager to take active part in the development of the Balkan market, said the press office of the Bulgarian government. Last week Prime Minister Sergei Stanishev met with the firm’s executive committee member Pierre Clavel and Bulgarian Energy Holding executive director Galina Tosheva. During the recent gas crisis GDF said it wanted to supply from the LNG terminal in northern Greece and to build a gas pipeline linking Bulgaria and Greece. The firm is interested in investments in the gas transmission and distribution grids of Romania, Bulgaria and Greece, in gas deposits and in the privatisation of the Sofia heating utility. In July 2008 GDF signed a memorandum for strategic partnership with former Bulgargaz Holding but the parameters have not been disclosed yet. The French firm bid to be the sixth shareholder of the Nabucco gas pipeline, which will pump gas from central Asia to Europe starting in 2013. However, it failed to win the support of Turkey. BEH, the structure grouping Bulgaria’s key energy assets, said it plans to strengthen the regional cooperation between gas companies. It will seek to negotiate emergency gas supplies from Turkish Botas, Greek Depa and Romanian Romgaz.
Source: Dnevnik (16.02.2009)

Bulgarian Energy Holding (BEH) is planning to expand across Southeast Europe, said the chief executive director of the state company Galina Tosheva. The expansion will begin by establishing joint ventures in the region and the first market, which BEH will enter, is Macedonia. In the future, BEH will also participate in explorations of wells in gas-rich countries. The company is considering expanding its activities in Albania and Serbia as well. Along with this BEH plans to implement projects valued at EUR 900 million in Bulgaria over the next two or three years.
Source: ipo.bg (20.02.2009)

Bulgaria and Romania will start a joint pre-investment research for the construction of an inter-system link for the transfer of natural gas in the section Ruse-Giurgiu. The two sides will analyze the opportunity for using partial financing from the European funds for the construction of the link, the Bulgarian Energy Holding announced. This was discussed at a meeting between the managements of Bulgartransgaz EAD, subsidiary of Bulgarian Energy Holding EAD and Transgaz, Romania, which took place in Sofia on 18-19 February.
Source: news.bg (20.02.2009)

Bulgaria may require EUR 40 million for the expansion of the gas storage in Chiren, announced the Minister of Economy and Energy Petar Dimitrov. However, the Minister explained that there is still no official decision about it. In his opinion the total investment, needed for the complete expansion amounts to EUR 250 million. Petar Dimitrov further explained that the resources are needed to increase the storage capacity as well as to reach daily production equal to the daily consumption of Bulgaria.
Source: Darik Radio (23.02.2009)

Bulgaria may face gas crunch in 2010 Bulgaria could suffer a gas shortage in 2010 unless it agrees new volumes from Gazprom and reworks its supply contract, Energy Minister Petar Dimitrov told the energy conference Security, Liberalisation and Climate held by Capital weekly and Business and Ecology magazine. In 2006 Bulgaria negotiated a little over 3 billion cubic metres of gas annually for the time until Russia starts pumping into the South Stream pipeline. After 2010 Bulgaria will quench its thirst for gas through the Nabucco and South Stream pipes. According to its new energy strategy, the country should derive 34% of its energy from renewable sources by 2030 and 7% from LNG terminals that are yet to be built. January’s gas crisis might repeat itself, but on a smaller scale, Dimitrov predicted.
Source: Dnevnik (25.02.2009)

Bulgaria's energy market overregulated, businesses say Bulgaria holds a tight grip on its energy market and there is no real competition in the sector, Bulgarian Industrial Association chairman Bozhidar Danev said, and called for new, flexible power rates and new rules. His statement came a week after the European Commission told Bulgaria that it would trigger an infringement procedure for violations of the electricity directive and setting allowances for exports to the national grid at preferential tariffs. Power retailers association chairperson Roumyana Georgieva said that at least 40 per cent of the market should be deregulated. We hear the talk every year but nothing ever changes, Georgieva said. Power companies estimated that only 20 per cent of their output is sold at free prices. Extra volumes are thus offered at very high prices of up to 260 to 270 leva a MWh, CEZ Trade Bulgaria executive director Vladimir Dichev said. Although they may end up with spare volumes, companies usually order 20 per cent extra supplies, which threatens the market, Dichev said. BIA urged the Government to only regulate the buy-out prices under long-term contracts with the investors in the construction and upgrade of power stations at coal miner Maritsa East. The deal with US firm AES for Maritsa East 1 lignite-fired power plant was signed 10 years ago and runs for 15 years, the same duration as the contract with Italian Enel for Maritsa East 3. The agreement for coal-fired power station Maritsa East 2 also has a 15-year term.
Source: Dnevnik (26.02.2009)

Bulgaria Demands another EUR 700 M over Kozloduy Nuke “We’ve got good chances to receive 500 to 700 million euros in compensations over the decommissioned units 3 and 4 of the Kozloduy Nuclear Power Plant,” Bulgarian MEP Atanas Paparizov told the Bulgarian National Radio. “Demanding this, however, the Bulgarian government must provide some solid grounds, because the EC would not let us have the money just like that,” Paparizov added. Reasons to ask for this money are sufficient. Bulgaria has already been given the negotiated 550 million euros, which was allotted to the Kozloduy International Fund. The good news is that the talks left a loophole for additional calculation of the losses. And the better news is that Spokesman for Energy for the European Commission Ferran Tarradellas thinks so, too. He flatly discarded all possibilities for reactors’ restart, but nevertheless announced that the Commission is ready to consider a request for additional compensation.
Source: Standart (27.02.2009)

Italians to Build the Gas Pipeline Link The Italian Edison S.p.A will partake in the Komotini-Dimitrovgrad gas pipeline implementation. The news came following Bulgarian President Georgi Parvanov’s meeting with Italy’s PM Silvio Berlusconi. Despite the death of Berlusconi’s sister Maria Antonietta, Berlusconi and Parvanov had an hour-and-a half-long lunch. “We discussed Edison’s interest in the building of the Komotini-Dimitrovgrad section, which is very important to Bulgaria,” Parvanov told journalists after the conversation. He also said he was happy that Italy’s business community was reconfirming their interest in Bulgaria. “The crisis has not yet decreased Italy’s investments in Bulgaria. They even tend to increase,” Bulgaria’s Head of State added.
Source: Standart (27.02.2009)

The last volumes of gas which will compensate the lack of fuel from January 6 to January 21 will be delivered the following days, announced CEO of Overgas Inc. Sasho Donchev. "This means that we have fulfilled our commitment to Bulgargas within three months to supply the nonsupplied amount of gas during the gas crisis", he explained. "We are not faced with the question of compensations," said the CEO of Overgas. He added that the company had not received any letter with a claim for compensation of losses and the lost benefits of Bulgargas because of the gas crisis. Donchev said that the recently observed pressure from the state for concessions for certain social groups contravenes with the Law on Competition. He said that concessions could be made only to consumers who regularly pay. According to him, the prices in Bulgaria are managed by the Minister of Economy and Energy.
Source: Sega (11.03.2009)

Bulgarian Bulgargaz Offers 10% Lower Prices The Bulgarian gas supply company Bulgargaz has proposed State Commission for Energy and Water Regulation to lower the natural gas prices by 10.53%. Bulgargaz demands a price of BGN 549.96 per 1000 m3 (no value added tax included), which is BGN 64.7 per 1000 m3 less, compared to the current price. The reason for the price cut is the lower prices of the alternative to natural gas fuels on the international markets. A month ago Bulgargaz announced that it would lower the prices by 12%, but due to the higher USD exchange rate, an increase was needed.
Source: Standart (11.03.2009)

The gas pipeline South Stream will run in 2015, said the Russian Prime Minister Vladimir Putin. In June last year the Russians said categorically that there would be no delays and the project would be ready in 2013-2014. The value of the pipeline will be about EUR 10 billion. There will be no problems with financing and provision of the necessary volumes of gas, as Moscow has enough fuel for the European consumers for the coming 100 years, Putin said. According to the director of the Russian Gazprom Alexey Miler South Stream has no competition. The pipeline will provide gas from Russia to the countries of Western Europe, as the facility will pass on the bottom of the Black Sea.
Source: Novinar (12.03.2009)

Bulgaria/EBRD consider joint schemes for expansion of gas storage in Chiren Bulgaria and European Bank for Reconstruction and Development /EBRD/ have considered joint schemes for the expansion of gas storage in Chiren. They have considered the variant EUR 250 million to be given. How they will be allocated in time and whether such contact will be signed depends both on Bulgarian Energy Holding and the bank. This is what Minister of Economy and Energy Petar Dimitrov told. The matter in point is about loans, which Bulgaria will receive on different directions. Future intentions in Galata are have general view due to the fact concession has to be stopped and new agreements have to be searched. There is no courts decision for now on this issue and we cannot ask for concrete financial support, Minister said. There have been talks for several month but they became more intensive after gas crisis in January. Dimitrov expressed his hope results will come during this government’s term of office. According to holding’s assessments EUR 250 million is the amount of money, needed for the expansion of gas storage in Chiren.
Source: Agency Focus (18.03.2009)

Nabucco Pipeline Removed from EU Priority List The Nabucco gas pipeline project to pump natural gas from Central Asia to Europe transiting Bulgaria has been removed from a European Union list of priority projects. The EU had initially planned to allocate EUR 250 M to finance the project, but later the funds were cut to EUR 50 M, Russian news agency Novosti reported Tuesday. The USD 10 B Nabucco pipeline, backed by the European Union and the US, is intended to link energy-rich Central Asia to Europe through Azerbaijan, Georgia, Turkey, Bulgaria, Romania, Hungary and Austria, bypassing Russia and Ukraine. Construction has been tentatively scheduled to begin in 2010. The Nabucco project is seen as a rival to Russia's South Stream gas pipeline designed to annually pump 31 billion cubic meters of Central Asian and Russian gas to the Balkans and on to other European countries. The project involves Bulgaria, Serbia, Hungary, Italy and Greece. Russia's transit disputes with its former Soviet neighbors have raised concerns in Europe about too much energy dependence on Russia. Russia cut off gas supplies to Ukraine on January 1 after failing to reach a deal over debt and prices for 2009 in late December, and later halted gas deliveries to Europe, saying Ukraine was stealing transit gas.
Source: Capital (18.03.2009)

The EU spends EUR 350 billion each year on import of fuels, Directorate General for Energy and Transport in Brussels data shows, said Gergana Miladinova - an expert at the department. The Commission's intentions in the coming years is to expand opportunities for financing projects related to energy efficiency. 54% of the energy use in the European Union is imported, said Gergana Miladinova: This means that EUR 350 billion are paid each year to countries that produce, and thus assist other countries outside the EU, instead of using the money in Europe. Miladinova also announced that Brussels paid EUR 9 billion for projects to produce renewable energy and energy efficiency: In the context of this economic recovery, there are new opportunities to finance energy efficiency and renewable energy. Until recently it was impossible to finance projects on private housing level. Now this would be possible.
Source: Darik Radio (19.03.2009)

Bulgaria's PM Demands Millions of Euro for Kozloduy NPP Bulgaria's PM, Sergei Stanishev, demanded additional compensations from the EU for the pre-term decommissioning of Units 3 and 4 of the Kozloduy nuke. At the summit of the Council of Europe held in Brussels, PM Stanishev underlined that Bulgaria had already submitted a detailed and well-grounded document regarding the additional compensations. The reason for PM Stanishev’s demand is the present re-examination of the EU financial perspective till 2013. Bulgaria insists on getting the same amount in compensations as the other EU states that decommissioned their reactors received. It is a question of millions of euro. During the meeting with his counterparts from the EU, PM Stanishev insisted on coordinated European policies for fighting the economic and financial crisis. Stanishev presented the anti-crisis plan of Bulgaria’s cabinet before the leader of the Alliance of Liberals and Democrats in the European Parliament Graham Watson. Stanishev also stressed that due to the prudent fiscal policy of his cabinet, Bulgaria had not demanded a single eurocent from the EU to cope with the crisis.
Source: Standart (20.03.2009)

EPP: Bulgaria should re-boot NPP Kozloduy reactors Bulgaria should restart the shut down reactors of NPP Kozloduy to save its economy from the spreading global financial crisis, said Struan Stevenson, Group of the European People's Party (Christian Democrats) and European Democrats, Vice-Chairman, at a forum of the member parties of the EPP-ED organized yesterday in Sofia on the initiative of the Citizens for European Development of Bulgaria (GERB) party. Mr. Stevenson added that the nuclear reactors should be restarted by the end of the year to help Bulgaria avoid energy dependence on Russia. "Thus, only in a year and a half Bulgaria will make profit equal to the compensations paid by the EU for the reactors decommissioning,’ he added. Reactors 3 and 4 of NPP Kozloduy were closed as a condition for Bulgaria’s accession into the EU and the country was compensated with half a billion euro.
Source: Standart (20.03.2009)

Gas Field Discovered in Northern Bulgaria "Bulgaria can extract natural gas from the newly discovered field by the village of Deventsi, northern Bulgaria for the coming six or seven years," energy expert, Prof Atanas Tassev told The Standart. According to geologists, the field holds about 6.6 billion cubic metres of gas. Tassev believes the extraction capacity of the field will be about 500 million cubic metres a year but in extraordinary situations, like gas supply crisis, for instance, the volume can be increased. Besides after gas is pumped out the deposit can be used as a storage facility taking in about five billion cubic metres of gas. Such a capacity will be considerably greater than the Chiren gas storage facility, which can hold no more than 1 or 1.2 billion cubic metres of gas. Deventsi and Chiren together will provide Bulgaria with storage facilities almost as big as those of Ukraine, Tassev believes, definitely something that would help Bulgaria become a stabilizing factor for gas supply in the region.
Source: Standart (20.03.2009)

Russia Ready to Finance NPP Belene In an interview with the Bulgarian National Radio, Minister of Economy and Energy Petar Dimitrov said the government was searching for alternative sources of financing for the construction of Bulgaria’s second nuclear power plant in Belene (on the Danube.) According to initial plans, Germany’s energy giant RWE, which won the tender for constructor, was supposed to start pouring money into the project as soon as the joint venture with Bulgaria’s National Electric Company was founded. But it appears that the Germans have altered their conception, probably because of the spreading global financial crisis. They now say they would start financing the project only after it is completely structured, which is expected to happen in 2010 at the earliest. For this reason the Bulgarian government has started seeking alternative sources of financing, including Russia. Last week Minister Dimitrov paid a working visit to Moscow, where he had talks with Russian Energy Minister Sergey Shmatko and Leader of GK «Rosatom» Sergey Kirienko. Minister Dimitrov quoted Russian PM Vladimir Putin who during his last year’s visit to Sofia said that his country could allot 3.8 billion euro for the construction of Bulgaria’s second nuclear power plant.
Source: Standart (23.03.2009)

Brussels may dig into state aid for Bulgaria’s Belene NPP The European Commission (EC) is checking if the BGN 300 million of budget money allocated to the construction of Bulgaria’s Belene nuclear power plant is state aid and if it is lawful. An expert from the Competition directorate-general confirmed for Dnevnik that the Commission has asked Bulgaria’s ministries of finance and energy for details about the distribution of the funds. Last year the government decided to back the nuclear power scheme with BGN 300 million it handed to the Bulgarian Energy Holding (BEH), the catch-all mega structure of key state-run energy assets, which used it to hike the capital of national power grid operator NEK. The Commission acts on tip-offs from conservation group Greenpeace and the Green Science Policy Institute, which argued that the resources were an unlawful state aid of which Brussels has not been notified.
Source: Dnevnik (25.03.2009)

Nabucco starts in 2014 with 12 milliard cub.m. gas Reinhard Mitchek, Executive Director of the Nabucco project, announced the pipeline will be operational as of 2014. The first quantities of natural gas that will flow trough it will amount between 8 and 12 billion cub.m and will come from Azerbaijan, Mitchek said. The shareholders – OMV, Bulgargaz, MOL, Transgaz, BOTAS and RWE will be the first to transit gas trough Nabucco. Only 50% of the pipeline’s capacity will be at their disposal. Mitchek informed, that Gazprom will also have the opportunity to transport gas trough Nabucco. According to him, Russia and Russian gas were very important for Europe. Even so, he emphasized on the establishment of alternative routes for gas transit that would guarantee intense competition and market liquidity.
Source: Novinar (30.03.2009)

Kremikovtzi Wastes Natural Gas for BGN 236,000 a Day The debts of Kremikovtzi to the state-owned companies Bulgargaz, BDZ and NEC have reached BGN 300 million and they are growing every day. Keeping the plant alive is like flogging a long dead horse, economists say. If we finally let it die, the money of the Bulgarian taxpayers will stop sinking in the black hole called Kremikovtzi. Kremikovtzi’s debts amount to at least BGN 2.2 billion, the creditors say. The plant’s debts to the bondholders amount to EUR 325 million, plus the money that Kremikovtzi owes its suppliers, workers and the National Social Security Institute. Recent calculations show that natural gas for 235,857 burns every day in the furnaces of the dying plant. Kremikovtzi’s debts to Bulgargaz have grossed BGN 100 million. Economy and Energy Minister Petar Dimitrov said that the supply of natural gas to Kremikovtzi would be cut off with a decision of the State Energy and Water regulatory commission. In addition, Kremikovtzi owes the National Electric Company BGN 140 million and its debt to the state railway carrier BDZ amount to over BGN 21 million.
Source: Standart (02.04.2009)

Bulgaria to press for new South Stream gas grid Bulgaria is sticking to its case that the South Stream natural gas pipeline should use a new transmission network instead of the existing infrastructure, deputy energy minister Yavor Kuyumdjiev told the Bulgarian National Radio. The project will be reviewed during the visit of Bulgarian prime minister Sergei Stanishev to Moscow on April 26-28, when he will meet with president Dmitry Medvedev and prime minister Vladimir Putin. The visit is expected to see parties seal the gas route agreement, according to Kuyumdjiev. Bulgarian energy minister Petar Dimitrov said in February that using the existing gas transmission grid to pump gas from Russia to Europe would affect Russian gas transits to Greece, Turkey and Macedonia and rule out options for alternative supplies. In addition, he argued this would require expansion of the capacity of the existing network. Once the framework agreement has been signed, the Bulgarian Energy Holding, which groups the country’s main state-owned energy assets, and gas major Bulgargaz will set up a 50-50 project company, giving the Russian ownership on the pipelines.
Source: Dnevnik (06.04.2009)

The Bulgarian Energy Holding (BEH), the catch-all mega structure of key state-run energy assets, has acquired around BGN 215 million of the BGN 328 million total debt of the Sofia heating utility to gas retailer Bulgargaz, a source close to the deal said. Last year the Bulgarian government allocated BGN 215 million to helping the utility get back on its feet. Toplofikatsia Sofia has current gas liabilities of some BGN 140-150 million. Last week the supplier threatened the utility it would turn the tap unless it pays down its debts, prompting it to give it some BGN 38 million. Last year a separate BGN 110 million was moved to a deferred payment scheme over a five-year period. The acquisition practically makes BEH a shareholder in Toplofikatsia Sofia. BEH executive director Galina Tosheva confirmed the deal has been signed and the company was now awaiting energy minister Petar Dimitrov’s decision on its participation in the utility.
Source: Dnevnik (06.04.2009)

Sofia Asks Moscow for a New Gas Pipeline Sofia has asked Moscow to build a parallel South Stream pipeline to transit the natural gas to Western Europe. Thus, Bulgaria’s internal gas transportation network will not be used to carry the fuel. This transpired from an interview of Deputy Minister of Economy and Energy Yavor Kuyumdzhiev. He said Sofia was firmly against Moscow’s proposal to use the pipeline system of BulgarTransGas to carry the South Stream fuel to Europe. An intergovernmental agreement on the issue is expected to be signed during the energy summit in Sofia on April 24-25 or a day later, when PM Sergey Stanishev leaves for Moscow.
Source: Standart (06.04.2009)

Sofia: South Stream should use different infrastructure According to Bulgaria's Minister of Economy and Energy, Petar Dimitrov, Bulgaria's gas transmitting infrastructure cannot be incorporated in the South Stream pipeline. "Filling up our system with natural gas from Gazprom only will make useless Bulgaria's initiative to seek alternative energy suppliers," Minister Dimitrov says. Russian journalists suggest that Sofia's moves aim to increase the price of the project and to urge Moscow take measures to eliminate the intermediaries in supplying natural gas to Bulgaria. RBK Daily writes that Gazprom wants to use Bulgaria's pipeline to Greece in order to save from the construction of an alternative pipeline, which would cost US$ 2 million per kilometer. "We are still decided to file claims against the parties responsible for the gas crisis in January," Minister Dimitrov said. He raised the question during his visit to Moscow.
Source: Standart (08.04.2009)

Bulgarian Energy Holding (BEH), which groups the country’s core state-run energy assets, will set up by the end of the year a special vehicle to develop renewable energy projects. Speaking at a wind and hydropower conference held by Dnevnik, BEH executive director Galina Tosheva said the company will explore clean energy generation alone or in partnership. She added there has been investment interest in the creation of a joint venture, but would not elaborate further. NEK, which handles Bulgaria’s national power grid, currently operates 29 hydropower stations with a total capacity of over 2,500 MW, of which 14 generate the bulk of Bulgaria’s energy output. The power utility has already submitted an application with the energy watchdog SEWRC for a permit to harness wind power. It plans to build a 72 MW wind park in Krumovgrad, southern Bulgaria, a joint project with Greece-registered company NECO S.A., where it holds a majority stake. Greek companies Damco Energy S.A. and Gas S.A. each hold a 25% stake in the scheme. The project hit a stumbling block when it turned out it falls within the Natura 2000 Network of protected species habitat sites. The Tsankov Kamak hydro complex should be up and running in 2010.
Source: Dnevnik (15.04.2009)

Energy Interests Clash at Forum in Sofia A global energy forum will be organized in Sofia on Friday and Saturday under the motto "Natural gas for Europe - security and partnership". The event will be attended by heads of state, ministries, experts and heads of energy companies. Observers expect a silent energy war to unfold at the forum, waged by centuries-old diplomatic means like the presence or absence of certain delegates, which expresses the position of their countries on certain issues, and the pushing of certain projects and topics up on the agenda at the expense of other. A few days before the opening of the forum, it is still uncertain who will be coming to Sofia. High representatives of twenty-nine countries and international organizations among them being Austria, Azerbaijan, Albania, Armenia, Bosnia and Herzegovina, Georgia, Greece, the European Bank for Reconstruction and Development (EBRD), EU institutions, Egypt, Italy, Kazakhstan, Qatar, Macedonia, Moldova, Romania, Russia, USA, Slovenia, Serbia, Turkmenistan, Turkey, Ukraine, Hungary, Germany, France, Croatia, Montenegro and the Czech Republic. Russian PM Vladimir Putin, Qatar Amir H.H. Hamad Bin Khalifa Al-Thani, heads of state from the region and EC President Jose Barroso are expected to attend the forum. However, few of the invited statesmen have confirmed their participation in the forum. The exact topics to be discussed at the forum are not completely clear yet. Bulgaria's President, Georgi Parvanov, at the personal initiative of whom the energy summit in the National Palace of Culture is organized, has forwarded four ambitious goals, which are especially topical after the gas crisis in January that hit Bulgaria hardest. These are as follows: 1. Defining new European energy policy; 2. Search for new international agreements and achieving permanent guarantee for the energy security in Bulgaria, the Balkans and Europe; 3. Implementation of strategic projects like Nabucco and South Stream; 4. Prevention of crisis situations related to supplies of natural gas and oil. "Bulgaria endeavors to develop good relations with Russia," Bulgaria's President Georgi Parvanov said in an interview with German newspaper Seuddeutsche Zeitung. President Parvanov put the stress on the friendly relations between our country and important and promising gas suppliers as Aserbaijan, Turkmenistan and Uzbekistan. "This are good prerequisites for Bulgaria to play the part of a mediator, fulfilled with good will, if that is what the EU wants," Parvanov commented. At the same time, Sofia will host a parallel business forum which is to be joined by the representatives of leading gas companies. The event is organized by the Bulgarian Energy Holding. It will be opened by Bulgaria's PM Sergei Stanishev.
Source: Standart (21.04.2009)

Ten World Leaders to Attend Bulgaria's Energy Forum More than ten heads of state or government are expected to arrive for the energy forum in Sofia, news agencies announced. The leaders of Albania, Croatia, Azerbaijan, Montenegro Serbia, Bosnia and Herzegovina, Greece and Armenia will attend the forum. Macedonia initially confirmed its president's participation but then decided it won't be sending anyone. The Emir of Qatar will make his second visit to Bulgaria and attend the meeting. "The President of the European Commission Jose Barroso hopes he would be able to make it for the energy conference in Sofia, but the final decision whether he would be able to travel has not been made yet," EC Spokesperson Mark Gray said. The Czech Republic will be represented by Deputy PM Alexandr Vondra. Kazakhstan, Turkmenistan, Egypt, Italy, Romania, Austria, France, Germany, Ukraine will commission representatives, too. It is expected that the meeting will finish with a joint declaration by the participants. A day before the energy forum takes place Turkmenistan will host another big energy security conference of the countries of its region that will be attended by Bulgaria's Minister of Economy and Energy Petar Dimitrov.
Source: Standart (22.04.2009)

Varna Becomes Gas Klondike Bulgaria's coastal city of Varna may become a Klondike of natural gas, it emerged during a discussion anchored by Standart's Editor-in-Chief Mrs Slavka Bozukova. "The exploitation of the newly-discovered gas deposits Kavarna 1 and Kavarna 2, Kaliakra and the small deposits that meet local needs will boost the city's economic development," Bulgaria's Minister of Economy and Energy Petar Dimitrov said. "The strategy for diversification of the gas supplies to Bulgaria also involves the construction of a depot in the Galata gas field and terminals for supply of liquefied and compressed natural gas at Port Varna. It is also possible that South Stream pipeline reaches Bulgaria at the coast of Varna," Minister Dimitrov added. "We are now fully dependent on Russia for natural gas supplies, but we think that by 2020 this dependency will fall to 59 percent, because by then Bulgaria will be able to meet 30 percent of its domestic demand for this fuel through supplies from the gas networks of Turkey, Greece, Italy (’GI) and the Nabucco pipeline, and by 2030 Bulgaria will become even less dependent on Russian gas, as the TGI pipeline will connect to our gas transportation network," the minister said in conclusion.
Source: Standart (22.04.2009)

Gazprom to Contract Bulgaria for South Stream in 2009 Gazprom will sign agreements with Bulgaria, Serbia and Greece for its new South Stream gas pipeline to Europe this year, the deputy director of the Russian energy giant told. According to Alexander Medvedev the technical and economic assessments of all sections in the project should be prepared in 2009. He also said that Gazprom will insist that the European Union puts the South Stream pipeline on its list of priority projects. The 10 billion euro South Stream pipeline, which Gazprom and Italian oil firm Eni plan to build, will bypass Ukraine, the biggest and most politically troubled route for Russian gas to Europe. It is seen as a rival to Nabucco and will take Russian gas under the Black Sea to southeast Europe.
Source: Darik Radio (22.04.2009)

Bulgarian energy network requires big investments Big investments in the electric energy network of Bulgaria are needed, believe experts from energy companies, which took part in the conference “On the route to liberalized electric energy market: successes and perspectives”. The Czech ambassador in Bulgaria Martin Klepetko also attended the event. The politicians should explained to the people the advantages of the liberalized market, claimed ambassador Klepetko in his speech to the participants in the conference. According to him at the moment the issues has only social dimension, which is related to the price of electricity, while a much broader public debate should be organized for the way in which the energy market should develop. Kalina Trifonova – vice-president of “EVN Bulgaria” pointed out that in order to secure the development of the energy network, big investments were needed. Therefore the state should have a clear policy on the water energy sources and should specify their territorial distribution. Tomas Laivic – chair of the Ad hoc group for Southeast Europe in EURELECTRIC presented in his lecture the necessity for establishment of a regional electric energy market. Participants in the forum are also representatives of Scandinavian, Turkish and English energy companies, of “Enel” and the Bulgarian federation of the industrial energy consumers.
Source: news.bg (23.04.2009)

No Gas for Kremikovtsi after St George's Day Kremikovtsi steel mill is likely to cease functioning after St George's Day, that is May 6. After the holidays, May 1-6, Bulgargaz will stop the gas supply to Bulgaria?s largest metalworking company, reported Dimitar Gogov, head of Bulgargaz. "Unless the future of the company is clear by then, we will stop the fuel supply," Gogov told on the Bulgarian National Radio. No more gas supplies means no more processing of coke in the mill. Thus the furnaces in Kremikovtsi will be able to work on imported coke only.Meanwhile the workers in Kremikovtsi announced they would carry on their protests in front of the plant because Sofia downtown is closed for the energy forum.
Source: Standart (24.04.2009)

South Stream to Warm Europe for 100 Years Sergey Ivanovich Shmatko, Russia’s Energy Minister - Mr. Shmatko, how do you see Bulgaria as an energy center on the Balkans? - Bulgaria boasts a wonderful geographic location. It is on the way of all energy transit routes starting from Russia, Central Asia, the Middle East, northern Africa, the Black Sea region and the Caucasus that reach the EU. Bulgaria has all prerequisites to be the new energy center of Southeastern Europe. - All parties are interested in the speeding up the construction of the South Stream pipeline. It is said that for that purpose natural gas should be transited via Bulgaria’s territory through the already existing pipe network. What are the pros and cons of such a decision? - The routing issue and the use of the existing network of Bulgargaz will be examined according to the results of a technical and economic research. An option will be discussed at which the gas transit to third countries of a certain volume supplied through the pipeline will be realized with the use of the existing gas transit system. - Bulgaria’s current agreement on gas deliveries expires in 2010, which means that there will be new talks. Would the middlemen fall out? Would there be new gas transiting conditions? And most important: would there be a change in prices? - You should seek an answer to this question from the Gazprom and Bulgargaz officials. It is an issue to be settled on a corporate level and by means of a corporate agreement. - And what developments should be expected with regards to South Stream? - Regarding South Stream, our decision is to have its pipelines up and running no later than 2015. And so shall it be. We have, in practice, completed the process of concerting the necessary intergovernmental papers. That the Prime Minister of the Russian Federation did not arrive to Sofia and there are plans for the agreement to be signed in Moscow doesn’t mean we see any risks having to do with the project’s implementation. The South Stream project is being implemented as planned. The project’s major problem – its resource basis – has already been solved. The resource basis will be linked to Russian gas deposits, and Russia has enough gas to secure deliveries to Europe in the next 50, even the next 100 years.
Source: Standart (24.04.2009)

South Stream Project to Be Implemented as Planned Doctor of Geology Valentin Kanev has chaired the Balkan and Black Sea Petroleum Association since its establishment in February 1995. - Dr. Kanev, in your capacity of gas expert you are familiar with the news concerning the organization of the energy summit ?Natural Gas in Europe. Security and Partnership? held in Sofia. In your opinion, why Russia's Prime Minister Vladimir Putin and other heads of state who were invited as well as EU Energy Commissioner, Andris Piebalgs refused to take part in the forum? - Putin's decision is related mostly to the negotiations on the South Stream project which were supposed to happen but for certain reasons it turned out that they will not be held in Sofia. And South Stream is so significant a project that it is by itself a sufficient reason for the presence or absence of Russia's Prime Minister. As long as the other reasons circulated lately and cited for Putin's refusal, such as the presence of Georgia's President, they do not sound serious. - Do you think the Russians are right to insist on South Stream gas being transported on the currently existing Bulgarian gas transit network or does Bulgaria have the right to demand the construction of a new pipeline for the project? - I think the gas of South Steam can be transited via Bulgaria's existing network only is the latter does not have to change ownership for the purpose. Consequently Bulgaria may transit South Stream gas against a certain transit fee.
Source: Standart (24.04.2009)

Moscow is speaking… Bulgargaz and Gazprom will sign the agreement on South Stream gas pipeline in the middle of May. This was announced after the end of the talks in Moscow. Bulgarian PM paid a three-day working visit to Moscow. Russia has accepted all Bulgarian arguments following the meeting between Bulgarian Prime Minister Sergey Stanishev and his Russian counterpart Vladimir Putin on Monday before the opening of Bulgaria’s national commercial exhibition in the Russian capital. Tuesday’s meeting between the two prime ministers lasted more than half an hour. According to experts new obstacles can be put before the project in reference to dissensions with transit countries- resource deficit in reference to conflict with Turkmenistan as well as not enough financing, having in mind crisis influence upon Gazprom. It was announced in Sofia there were dissensions with Gazprom in reference to South Stream. Bulgaria refused proving part of its pipeline network to be used in the frames of the projects. Moreover it became clear at Energy Summit in Sofia this “dissension” could become the main one. Sofia asked Russia to sign new, more profitable contract on natural gas deliveries, to increase transit taxes as well as guarantees on natural gas deliveries on alternative routes in case of another gas crisis. Two-day summit on Natural Gas for Europe: Security and Partnership was held in Sofia on Friday at the initiative of Bulgarian President Georgi Parvanov. The Summit seeked to engage EU's major energy partners in a dialogue on the EU energy security approach. Invitations to the two-day forum have been extended to 28 countries from Southeast Europe, Black Sea and Caspian Regions, Central Asia, EU member states, Russia, Egypt, Qatar, to the European Commission and the European Bank for Reconstruction and Development. European Commission President Jose Manuel Barroso attends the summit. Main aim of the Summit was energy security in Europe and at the Balkans as well as opportunities on reaching united European Energy market. Immediately after the end of the international conference in Sofia, Bulgarian Prime Minister Sergey Stanishev arrived in Moscow. Russia expected that a preliminary agreement on the construction of the Bulgarian section of South Stream gas pipeline will be signed, but on the background of the growing competition of European project Nabucco, Sofia insisted on signing a new agreement on supplying Russian gas to Bulgaria under conditions that are more beneficial for it. Immediately after his meeting with Vladimir Putin PM Stanishev held talks with Russian President Dmitry Medvedev Russia Arms informed. At the beginning of the talks Russian President said he was familiar with the details of Monday and Tuesday’s talks and welcomed the constructive dialog between the two countries. You had a good full-fledged negotiations with the chairman of our government ... There are tangible results of your work. Anyway, the final agreement, I understand that the energy project. I hope that in this sense, we can finally go to the signing of documents at the earliest time, despite the difficulties of preparing the relevant documents, "- said Medvedev at the meeting. "You had a good full-fledged negotiations with the chairman of our government ... There are tangible results of your work. Anyway, the final agreement, I understand that the energy project. I hope that in this sense, we can finally go to the signing of documents at the earliest time, despite the difficulties of preparing the relevant documents, "- said Medvedev at the meeting. Sergei Stanishev also expressed satisfaction with the successful conclusion of talks with Prime Minister Vladimir Putin. "Well, that has successfully completed negotiations today to resolve the relationship between the Bulgarian Energy Holding and Gazprom pipeline" Southern stream ", - said Stanishev. He pointed to the complexity of the negotiations, in which" each side is looking for its maximum benefit, their interest. "
Source: Agency Focus (27.04.2009)

There's No Room for Concessions Peter Dimitrov, Bulgaria's Minister of Energy and Economy - Minister Dimitrov, what is the level of the negotiations that are currently being held between Bulgaria and Russia regarding the South Stream project? - Presently, no negotiations are being held. But they will probably be discussed on the highest political level. The questions that remained unsolved must be settled on the highest political level. - How do you interpret the postponed meeting between Russia's President Medvedev and Bulgaria's PM Stanishev? - Let's first see if the meeting was postponed or cancelled. - Does Russia insist on binding South Stream with the new agreement with Gazprom? - No, I do not think that the two issues are interrelated, though there are explicit questions in this direction. This is exactly what it was the case at the last negotiations before Putin intervened. The issues that remained unsolved are not to be settled at an expert level. The purpose of South Stream is to transport Russian gas to Europe. There will be no concessions on matters that hurt Bulgaria's interests. Bulgaria has already declared its position. This was noted in the intergovernmental agreement. Bulgaria's position cannot be changed. South Stream cannot used the present gas transiting system. Bulgaria insists to keep the current quantities of transported gas through the old system.
Source: Standart (28.04.2009)

Moscow Yields to Bulgaria's Conditions over South Stream Project The South Stream gas project already includes the construction of a new pipeline through the territory of Bulgaria: this resulted from the game of nerves between Bulgaria and Russia. Before this meeting, Moscow insisted on using the already existing transiting pipelines of Bulgargaz. The South Stream pipeline will be a brand new one, but the Russians insisted on an appendix to the agreement reading that in case they need to use the existing network, an additional contract on the transit will be concluded, explained Galina Tosheva, head of the Bulgarian Energy Holding (BEH). BEH and Gazprom negotiated the details of the agreement on the South Stream project by e-mails. The contract will be signed within two weeks. Yesterday, an agreement on the construction of the pipeline was sealed in the presence of Russia's PM Vladimir Putin and his Bulgarian counterpart Sergei Stanishev. The negotiations on the energy projects between the Bulgarian and Russian delegations in Moscow continued about two hours yesterday. The Russian PM described the development of the bilateral economic relations as dynamic. Putin explained that in their bilateral talks they had discussed the construction of Belene NPP in details. Stanishev asked Putin for an offer for the construction a Belene NPP. "Last year we offered Bulgaria a credit, which was included in the budget. Bulgaria declined it and we redirected the money," explained Russia's Prime Minister in obviously good humour. Stanishev added that Bulgaria managed to secure funding of the project in the last two years. The completion of the project will need further billions, though. "We will solve the problem," Putin concluded with a smile. The construction of Belene NPP will need 3.8 billion euro more. The Bulgarian Government hoped to find financing through Western European Banks. These attempts have proved fruitless so far. "We have sailed smoothly over the tension of the last few days between Moscow an Sofia concerning South Stream, said PM Putin. He, though, diplomatically evaded answering on the elimination of mediators in the contract for gas supply for Bulgaria. Bulgaria wants to receive gas directly without the three suppliers, one of them Overgaz. The two prime ministers defined their dialogue as constructive. At the start of the talks, Putin welcomed his counterpart saying:" Friends, I am glad to see you in Moscow. We are significant economic partners to each other and I am glad we have the opportunity today to talk about all issues concerning our cooperation, to analyze what has been done so far and map out our future perspectives," Putin stated.
Source: Standart (29.04.2009)

Moscow Realized Bulgaria Can Do without Russia Peter Kunev, MP from BSP party - Mr. Kunev, did Bulgaria's delegation led by PM Stanishev fulfil the maximum of its program in the negotiations over the energy projects in Moscow? - We have never set a maximum or a minimum program before us. We flew for Moscow absolutely well-prepared; we had previously sent our written proposals both regarding the South Stream project and the new agreement for deliveries of natural gas and the financing and construction of Belene NPP. I think that we fulfilled all our goals at 100%. Bulgaria is quite satisfied that the Bulgargaz proposal for South Stream was accepted. This move defends at a maximum level Bulgaria's interest in this project. - What does the signed agreement for South Stream read? - The demands of the Russian side for inclusion of the already existing Bulgarian pipelines in South Stream was dropped. Bulgaria explained that such a thing was impossible to happen. In my opinion, we defended Bulgaria's interests quite well. The use of the Bulgarian gas transiting system in the South Stream project would have hurt Bulgaria's interests. - What was the turning point in the negotiations? - The turning point came in several aspects. First it came from the firm and well-balanced statement of PM Stanishev in the Diplomatic Academy with Russia's Foreign Ministry. PM Stanishev was explicit that corporate interests of a group of companies or a group of people should not take the upper hand over political decisions that had already been negotiated at governmental and presidential levels. The second thing which PM Stanishev stressed upon was the Bulgarian participation in the Nabucco project and the coming signing of an intergovernmental agreement on the issue next month in Prague which is a new development on this project. The third very important issue was the diversification of suppliers. An example is the establishing of a terminal for compressed gas in Greece. The Russians realized they will have to seek for a kind of a compromise and a solution to the situation. - How concrete were the negotiations for the possible Russian funding for Belene NPP? - The Belene NPP talks were very interesting. The topic needs calm discussion, without emotions. Why does everybody shudder when mentioned Bulgaria will take a loan from Russia' Is Russian money worse than the Kuwaiti, Omani or any other? - Within what time is the Russians' answer expected? - We did not specify time. Sergey Kiriyenko (head of Rosatom)will probably arrive in Sofia within a week or two.
Source: Standart (30.04.2009)

The company is registered in Territorial administration Big taxpayers and insurers towards 2009, 04.30
Source: Tax Administration (30.04.2009)

EU Gives to Bulgaria E55 M for Gas Projects Bulgaria will receive 55 million euros from the European Union to implement energy projects as envisaged by the EU Program for Economic Recovery, whose overall funds amount - 3,98 billion - is going to be distributed among projects that will interconnect gas and electricity transfer systems, erect wind turbines along coastlines, and capture and store carbon dioxide. Bulgaria will be offered 45 million euros to link its gas transfer system with Greece’s along the Stara Zagora – Dimitrovgrad – Gyumyurdzhina route. The other 10 million will be absorbed by a gas link with Romania. Bulgaria and 11 other member states will be granted funding to build infrastructure and facilities that would allow gas deliveries in cases where “supply has been temporarily interrupted”. The Union is also planning to allot 200 million euros to Nabucco, which is going to bring Caspian gas to Europe.
Source: Standart (07.05.2009)

EIB to invest EUR 2, 5 billion in Nabucco Philippe Maystadt, President of the European Investment Bank (EIB) stated that the institution was willing to invest EUR 2, 5 billion in the Nabucco project. Mr. Maystadt commented, that the quantity of gas produced by Azerbaijan will not be sufficient for the implementation of the project and that Turkmenistan must by all means take participation.
Source: Standart (11.05.2009)

The Bulgarian Energy Holding (BEH) will establish four new companies as part of a new development strategy presented to the energy parliamentary committee. The structure, which brings together the country’s key energy assets, will branch out into engineering, gas exploration and extraction, renewable energy sources and finance. The finance unit will be tasked with arranging the financing for large-scale projects and raising capital and will come into being only if it is necessary, according to the document. The new engineering company, which will be open to external contractors as well, will deliver a reduction of subcontractor assignment costs by an estimated BGN 50 million each year. In addition, it is expected to shorten implementation periods.
Source: Dnevnik (11.05.2009)

Bulgarian Energy Holding (BEH), the catch-all structure for the country’s top energy assets, withdraws from the Bourgas-Alexandroupolis pipeline project, which should carry Russian oil via the Bulgarian Black Sea port of Bourgas and Greece's Alexandroupolis on the Aegean. The decision follows a new strategy to pursue a more conservative investment policy amidst the global economic downturn. The pullout leaves state-run construction company Technoexportstroy Bulgaria’s sole representative in the project. Russia controls 50% in the project company that will construct the pipeline, with Bulgaria and Greece holding 24.5% each. The Bulgarian share was so far distributed 50:50 between BEH and Technoexportstroy, but now the holding company will sell its state to the building firm for BGN 2.9 million, the amount the energy firm has ploughed in the project so far. BEH’s new investment policy involves participation in high-priority energy projects aimed at guaranteeing security of supplies, the company’s executive director Galina Tosheva said in a letter to Technoexportstroy, sources told Dnevnik. Earlier this year, BEH said the projects top of its agenda are building new gas links with Greece and Romania, the construction of a new gas storage facility in near Galata cape, on Bulgaria's northern Black Sea coast, and the expansion of the existing facility in the northwestern village of Chiren. Its other priorities include the liquefied natural gas (LNG) project near Alexandroupolis, the construction of a new coal capacity at Maritza East coal mines and the Belene nuclear power plant scheme in the eponymous Danubian town.
Source: Dnevnik (15.05.2009)

Kremikovtzi to turn into the new Boyana within 3 years Chief Architect of Sofia, Petar Dikov, said that there are plans for turning Kremikovtzi District into an area of low-store luxurious buildings. This means that within 2-3 years there may be a new quarter near Kremikovtzi, such as Boyana or Dragalevtzi. The plant, which was born exactly 50 years ago froze to death yesterday and said fairwell to its most polluting installation – the coke chemical mill. Even if it is reborn someday, the Northeast part of Sofia would never see such black clouds ever again.
Source: 24 chasa (16.05.2009)

12:43 p.m.: Kremikovtsi Dies on Its Birthday As of yesterday Bulgaria’s steel manufacturing giant Kremikovtsi is in clinical death. At 8:00 am worker teams began turning off the taps of the pipes that fuel the furnaces with natural gas. At 12:43 the gas supply for the coke-chemical plant stopped, which practically put halt all other activities, and, ironically, this happened on the very birthday of the plant. “Its two batteries were for the first time switched on precisely on May 15, 1963 and never went off in the 46 years that followed,” chief technologist Daniela Ermenkova said. The decision to cut off the gas supply became a must after the yesterday’s negotiations with the Brazilian investor CNS failed. The order for the closure was given by the Bulgarian Ministry of Economy and Energy.
Source: Standart (16.05.2009)

South Stream Flows out of Sochi The 2014 Winter Olympics venue – Sochi - yesterday gathered the reps of the Russian, Italian, Greek, Serbian and Bulgarian gas companies that were supposed to sign an agreement for setting up a joint venture and building the South Stream pipeline that would run through the territories of these countries. Gazprom’s agreement with Bulgargaz will read there would be brand new pipes laid in Bulgaria, ITAR-TASS reported. Bulgaria will be using this new gas transfer system to cover its own needs. Gazprom and Bulgargaz are getting ready to establish a new joint venture with a 50:50 share of ownership. According to current schedules, the project should be fully implemented by 2013.
Source: Standart (16.05.2009)

NPP Kozloduy without nuclear heat supply Kozloduy NPP announced a tender for construction of a heating plant for steam and hot water. The new installation shoul start until the end of 2012. The construction is necessary due to the early closure of units 3 and 4 at the end of 2006. The heating plant will be financed by the International Fund for closure of the Kozloduy NPP. Last winter the city of Kozloduy relied on the NPP for the heating. Thus the cost of heating and hot water for the population in the city of the NPP was the lowest in the country – BGN 36.60 per MWh, VAT included. Companies applying for the construction of the new heating plant should have built at least 2 similar ones over the past 5 years, which should have successfully been put into operation. Furthermore, each must submit a EUR 500,000 of bank guarantee. The announcement does not specify what fuel is to be used at the plant in the future - gas, coal, biomass or other. Its power is not given either.
Source: Trud (19.05.2009)

Energy Experts Suggest Construction of Unit 7 of NPP Kozloduy "The possibility for the construction of a seventh nuclear unit within the structures of Kozloduy NPP is entirely realistic and the money necessary for the implementation of the project will be about the half of that needed for the optional construction of a nuclear unit on a completely new ground," said Rasho Parvanov on behalf of the energy workers in Kozloduy NPP. Mr. Parvanov is the head of the Exploitation Department in the NPP. "The construction of Belene NPP is possible to be delayed," said Bogomil Manchev, chair of the Bulgarian Atomic Union at a conference on nuclear energy production. "We are doing our best to avoid this and will try our best that the ground where two units of Belene will be located be ready for the construction works within two months," he added.
Source: Standart (20.05.2009)

Heat Supply-Sofia reported the successful implementation of its five-year rehabilitation program of EUR 90.66 million. The project is financed by loans – EUR 15 million from the World Bank, EUR 26 million from the European Bank for Reconstruction and Development and EUR 26.4 million from the International Fund for the closure of Kozloduy NPP. Part of the resources in the period 2003-2009 was used for the replacement of 6840 subscriber stations. In these buildings heat losses have reduced on average by 22%. About 6000 other subscriber stations were upgraded with funds of the company. Another 2000 remain, for the replacement of which EUR 10 million are required.
Source: Trud (21.05.2009)

RWE German company, that was elected as strategic investor in the construction of Belene nuclear power plant (NPP), is negotiating with the Russian Inter Rao for joining the project, Mardik Papazyan, executive director of National Electric Company (NEC), the majority owner of the future plant, said. RWE is also holding talks with a Finnish company with experience in working with Russian nuclear reactors to participate as well. In the opinion of experts, the company in question has been interested in the project and may provide part of the financing. Some EUR 200-250 million will be needed for the construction of Belene NPP, Papazyan said. According to him, the funds have to be provided not only by NEC but also by the German RWE. The investor shows understanding that the money is needed lest the project will have to be suspended. The Germans are liable to help after setting up the project company with NEC. We hope this will become a fact in the middle of this summer, Boris Pekov, chairman of the board of directors of Bulgarian Energy Holding (BEH), commented. NEC has no funds and in these days of crisis, it is extremely difficult to provide the funding. Experts say there is no bank ready to grant a EUR 3.8 billion credit to Belene NPP. That is why one of the most realistic possibilities is the loan from Russia. Another is to seek credits from the state or BEH but it is not very likely to get them.
Source: Pari (28.05.2009)

Bulgaria faces over EUR 1m loss from Belene NPP delay Bulgaria will incur a loss of more than EUR 1 million from a one- or two-year delay in the construction of its second nuclear power plant Belene, said Ivan Atanasov, member of the project management unit of the Bulgarian Energy Holding and director of national grid operator NEK. Speaking at the annual conference of the Bulgarian Atomic Forum (Bulatom), Atanasov explained the loss was calculated on the basis of electricity that could have been produced if the capacity was operational at a price of EUR 0.35 per kWh. The start of building works is already between nine and eleven months behind schedule, and the strained financial environment threatens a further postponement of the project.
Source: Dnevnik (29.05.2009)

Bulgaria Govt Moves Closer to Nabucco Pipeline Agreement Bulgaria's cabinet voted Thursday to authorize the Foreign Ministry and the Ministry of Energy and Economy to sign an intergovernmental agreement for the construction of the Nabucco gas transit pipeline. Bulgaria's Energy and Economy Minister, Petar Dimitrov, commented that providing the funding for the realization of the EU-sponsored Nabucco project was the job of the six companies that are part of the Nabucco consortium, including the Bulgarian Bulgargaz. The securing of the natural gas supplies to fill the pipe, however, is more of a political issue rather than an economic one, and necessitates a political commitment on part of the interested states, Dimitrov said.
Source: Darik Radio (29.05.2009)

Negotiations on Gas in Moscow Negotiations on gas supply started on Thursday in Moscow. Head of Bulgargaz Dimitar Gogov met with Alexey Miller, Chairman of Gazprom Management Committee, sources from the Russian company announced. Gogov himself has confirmed before Mediapool that these were the first talks after Bulgaria had sent a proposal for a new contract. Gazprom has also made its offers. Due to the fact that the stands of the two parties do not coincide "two small teams have been created to solve the pending questions". He explained that quantities, prices, fees and terms will be negotiated at the next meeting. "The question about the intermediaries hasn't been discussed," he added.
Source: Standart (30.05.2009)

NPP Kosloduy Reactor VII to Cost EUR 1 M The construction of NPP Kozloduy seventh power unit is going to cost less than one million euro, the presentation of Mr. Rasho Parvanov, head of the power plant?s exploitation department, showed. The reason why a new power unit of NPP Kozloduy will cost several times less than one at the site of NPP Belene is that all the necessary facilities for a new nuclear reactor such as a turbine island, a cooling system, infrastructure and a connection to the national electrical network are existent and operational in Kozloduy. ‘Practically, the only thing that should be built is the reactor itself. All the other facilities are present and they can operate safely for at least fifty years more,’ Mr. Parvanov said. ‘In addition, after the decommissioning of power units 1-4, the auxiliary facilities are functioning at less than fifty per cent of their capacity. This means that the existing equipment at the site of NPP Kozloduy can fully service a new power unit of over 1,700 megawatts, and there are qualified nuclear power engineers in the region that can be hired. NPP Kozloduy also has all the necessary licenses and permits, which will significantly cut down the term for the construction of a new nuclear reactor. And if power units three and four are restarted, the power plant will be able to finance the construction of the new power unit on its own,’ Mr. Parvanov said in conclusion.
Source: Standart (30.05.2009)

Bulgarian Energy Holding (BEH), the catch-all structure for the country’s main energy assets, will collect BGN 20 million in management fees this year from the seven companies it consolidates, according to its business plan until 2011. The management fee it collects is based on the companies’ annual revenue, but the firms declined to provide any figures. The proceeds will finance management services and guarantee structuring and fulfillment of key strategic goals, BEH’s management told in response to an inquiry.
Source: Dnevnik (01.06.2009)

After the gas crisis in January, the threat of gas shortage appears at the end of every quarter. The reason is the difficulties the transit country Ukraine has in paying Russia for the consumption of the blue fuel. In this situation, Bulgaria is in absolute dependence as the only gas pipeline to Bulgaria runs across the Ukraine. Gas from Greece and Romania is twice more expensive, Boris Pekov from Bulgarian Energy Holding (BEH) told the Pari Daily. In case the crisis repeats in the summer months, it will not be as severe as it was in January, the crisis headquarters of the Ministry of Economy and Energy commented for the Pari daily. The reason is that consumption now is twice less than during the winter, about 5 million cubic m per day against 12 million cubic m in January. Another relief is the fact that Chiren gas depot is full. It can provide 4.6 million cubic m of gas per day, which is almost enough to satisfy the needs of the country and with its 800 million cubic m capacity it can guarantee supplies for a long period. Despite these facts, the business is worried. The reasons are several: lack of transparent criteria for determining the distribution of gas among consumers, lack of information which companies will be included in the restrictive plan and the fact that some production processes cannot use alternative fuel but only gas.
Source: Pari (02.06.2009)

Bulgaria to Have Second Natural Gas Depot in August ‘In two months’ time Bulgaria may have a second natural gas storage depot,? Economy and Energy Minister Petar Dimitrov said in the coastal city of Varna, yesterday. The minister added he had in mind the Galata natural gas deposit, which had recently exhausted its resource. Mr. Dimitrov went on to say that the operator of the Galata gas deposit, Melrose, was still to solve some legal issues in order to start its activity in Bulgaria, but talks would continue and a solution would be hammered out. ‘By June 15 Bulgaria, Romania and Greece are to apply to the European Commission for financing a project aimed at interconnecting the gas transport networks of the three countries,’ the minister said further. ‘The foreign investments to Bulgaria will drop twofold this year, down to only 7.5% of the country?s GDP,’ Mr. Dimitrov said.
Source: Standart (08.06.2009)

Kremikovtzi supplied with gas Kremikovtzi is being supplied with gas since June 4 and processes scrap, said the assignee in bankruptcy Tsvetan Bankov. The processing of materials would continue until June 15. Only the electrical furnace operates and the aim is to reduce the debts of the steel plant and to pay the advance payments of the workers for May. The current gas supply is paid daily after a new contract with Bulgargaz, said Bankov. The steelmaker supplies hot-rolled steel to 5 of its regular clients. The steel production needs gas worth BGN 100-130 thous a day. Thanks to the restarted operations, the planned for June lay-off of 1500 workers would be delayed for the end of August.
Source: Standart (09.06.2009)

ONET Dismantles Kozloduy Units 1 and 2 The decommissioned first and second units of Kozloduy NPP will be dismantled and recycled by the French ONET. Yesterday the company signed a contract for the recycling of 3,600 cubic metres of radioactive materials, waste from the decommissioned units of Kozloduy NPP. For the purpose, ONET will establish installations in close proximity to the NPP. The contract was signed in France's Embassy to Bulgaria in the presence of Bulgaria's Minister of Economy and Energy, Petar Dimitrov. The recycling activities will be funded by the European Bank for Reconstruction and Development.
Source: Standart (16.06.2009)

Eco Power Plants Under Government Control The construction works of the power plants, which would produce electricity from wind and sun, should be under government control in order to prevent serious end consumer price hike, said the head of SCEWR – Konstantin Shoushoulov. According to him the the new government and parliament should adopt a strategy for fulfilment of the EU requirements on the introduction of renewable energy sources. It should also consider the resources of the coutry, he said. Similar strategies have already been adopted in Germany and Spain. In those countries limits for the number of eco power plants constructed each year have been imposed, because in Spain it has lead to double electricity price. According to the chairman of NEK Mardik Papazyan Bulgaria can add to its network a maximum of 1500 MW wind power. Otherwise could lead to disruption of the energy system of the country. Papazyan offered that the eco energy does not exceed 20 percent of the total power produced in Bulgaria from all resources. Shoushoulov said that currently thre are applications for 12,000 MW of ‘green’ energy, while country’s energy network can transport a maximum of 10 thous MW.
Source: Standart (18.06.2009)

Bulgaria to Receive Natural Gas without Intermediaries after 2013 "Bulgaria will be receiving natural gas directly from Gazprom without the interference of any intermediaries from 2013 at the earliest, when the contracts that the government has signed with the intermediary companies expire," Bulgargaz CEO Dimitar Gogov said. "Despite the start of the Nabucco and South Stream pipeline projects, Bulgaria is firmly decided to keep its gas transport network," Bulgaria's Economy and Energy Minister Petar Dimitrov said at the opening of the upgraded Kardam 2 gas compressing station - the gateway of the Russian gas supplies to Bulgaria.
Source: Standart (24.06.2009)

NEK phases out power supplies to troubled Kremikovtzi Bulgaria’s national power grid operator NEK has started to cut power supplies as it seeks to collect upwards of BGN 150 million in outstanding debt. Metal companies that slashed production under the weight of the economic recession bore the brunt of the campaign. Kremikovtzi, which tops the list of debtors with a ballooning BGN 130 million, will be gradually shut off, NEK executive director Mardik Papazyan told Dnevnik. The debt-saddled steel mill has already been ordered to reduce power consumption to 20 MWh and come up with a debt settlement plan if it wants to keep volumes flowing in. The plant has had another debt of more than BGN 70 million rescheduled under the Cabinet of the National Movement for Stability and Progress (NMSS). Bulgaria’s Electricity System Operator (ESO) has already said it will turn the tap on the steel maker from July 1 in a move that has won over the management of the Bulgarian Energy Holding (BEH), the catch-all structure for the country’s top energy assets, including NEK. BEH executive director Galina Tosheva said ESO will use all means to keep Kremikovtzi’s debt pile at bay. The plant’s receiver Tsvetan Bankov said power use must be trimmed down by 2400 hours local time on Thursday. But sources say power will continue to trickle to the mill at least until the general elections on July 5. Ihtiman-based cast iron foundry Tchugunoleene also faces cut-off unless it pays down its BGN 4.5 million debt to the grid operator by July 7. ESO executive director Ivan Ayolov said the company will seek sanctions for the plant, which shut out its teams on Monday. Statutory rules require electricity consumers to comply with the operator’s instructions and turn off capacities if ordered. Ilchev said ESO has rejected a proposal by the plant to reschedule its debts, some of them dating back to 2003.
Source: Dnevnik (25.06.2009)

Gazprom: “No-Middlemen” Contract with Bulgaria No Earlier than 2013 “Gas deliveries without intermediaries may be a fact no earlier than 2013. A direct agreement between Bulgargaz and Gazprom is possible, but not before all previously made arrangements are fulfilled,” Gazprom vice president Alexander Medvedev said, as quoted by the Bulgarian National Radio. The currently valid agreement is with Overgas and will be terminated in 2012. Medvedev prognosticates that the average price of Russia’s gas for the European Union this year will be 280 dollars per 1000 cubic metres. Medvedev also announced that the Gazprom fuel export in the first half-year will be 26 percent or nearly 60 billion cubic metres less than initially planned.
Source: Standart (25.06.2009)

Bulgaria to be Sanctioned for Energy Monopolies The European Commission launched punitive procedures against Bulgaria and another 24 EU countries for breaking the laws regulating energy production and distribution. The problem is that the consumers are deprived of their chance to benefit from the opportunities offered by an open and competitive energy market. According to the EC, these states don't apply the standards in a way that would make the operators of power and power distribution networks give enough information to the consumers as regards the choice of electricity and gas suppliers. The transborder cooperation between the operators is not at a level that would allow the consumers buy electricity or gas from the other EU member states. The EC thinks that even the regulation of prices is sometimes to the benefit of the big consumers and not to the citizens.
Source: Standart (26.06.2009)

Seventy plants generate electricity from wind More than 70 wind power plants are operating in Bulgaria at the moment. Besides the crisis the investors’ interest in such projects is huge. Most numerous are those in the region of Kavarna and Balchik, as well as around Sliven, Aitos, Yambol, Targovishte and Somovit. Two more parks are being constructed around Kaliakra and are to be set in operation in 2010. Then, the of wind power plants total capacity is expected to reach 300 MW. The installed capacity at the moment amounts to 112 MW.
Source: Standart (29.06.2009)

Bulgargaz, the state-owned gas distribution firm, said that it posted a 91 million leva loss in 2008, as opposed to 87 million leva profit for 2007. The loss was reported despite a 29 per cent increase of annual turnover. Revenue from natural gas retail rose by 27 per cent to 1.57 billion leva, but the company paid 1.81 billion leva to buy natural gas, 241 million leva more than it actually managed to sell on the domestic market. Transit revenue figures stood at 140 million leva in 2008, an 8.42 increase as opposed to 2007, despite dwindling transit traffic as supplies to Greece fell by 9.44 per cent and a 1.62 per cent decline in supplies for Turkey. But the main reason for the net loss were the debts owed by utility companies. At the end of 2008, Toplofikatsiya Sofia owed Bulgargaz 268 million leva, which has been covered partially since then. Bulgargaz is also due 9.5 million leva from Toplofikatsiya Pernik and 196 000 leva from Toplofikatsiya Shoumen. All three heating utility companies are currently state-owned.
Source: investor.bg (01.07.2009)

State-run Bulgargaz wades into the red in 2008 Bulgaria’s state-controlled gas company Bulgargaz swung to a loss of BGN 90.5 million in 2008 from a profit of BGN 86.9 million for the previous year. The company attributed the negative performance to the prices said by the energy watchdog, the State Energy and Water Regulatory Commission (SEWRC), which halved most of its price hike requests. Bulgargaz raked in sales of BGN 1.3 billion, some BGN 300 million on top of last year’s figure. Supplies prepayments rose to BGN 95 million. Transit fee receipts paid by Russian gas mammoth Gazprom to carry gas across Bulgaria to Greece, Turkey and Macedonia, marked a slight decrease after earlier this year receipts were channeled to grid operator Bulgartransgaz to overhaul the infrastructure. The move, which was prompted by the regulator and the European Commission (EC), left Bulgargaz with BGN 73.9 million of the total 140.2 million, where a portion was given to the grid operator. The state-run firm has taken bank loans to the amount of BGN 196 million, including debt to the Bulgarian Energy Holding (BEH), the catch-all structure for the country’s top energy assets. Short-term liabilities have widened to BGN 356 million from BGN 123 million.
Source: Dnevnik (07.07.2009)

Bulgaria eyes gas deliveries from Turkmenistan Bulgarian Energy Holding (BEH) will purchase gas from Turkmenistan, said Dimitar Gogov, executive director of state-run gas company Bulgargaz, which is part of the catch-all structure for the country’s major energy assets. Gogov, as quoted by news portal Trend News, said that after the expiry of its Russian gas supply contracts in 2010-2012, the gas firm will seek to diversify sources by tapping supplies from Central Asia. While currently selling to Russia, Turkmenistan is keen to explore European markets as well, with one of the options on the table supplying the Nabucco pipeline, which should pump gas from central Asia to Europe starting in 2013. Azerbaijan will also play a key role in diversifying Bulgaria’s gas delivery sources, according to Gogov. The country is tipped as Nabucco’s likeliest supplier despite Russia’s eager attempts to buy out all volumes as it seeks to block the scheme. Bulgaria has already said it plans to use one billion cubic metres of gas each year from the pipeline. The quantities should be provided by Azerbaijan. “The financial meltdown will have a serious impact on natural gas consumption, but, as with any crisis, the downhill slide will hopefully be short and I believe that demand and consumption in Europe and Bulgaria will start to recover as soon as at the start of 2010,” Gogov said.
Source: Dnevnik (08.07.2009)

Energy Holding managers cost over BGN 1 mln The five members of the Bulgarian Energy Holding have cost the state-owned company BGN 649 thous until now. In case the new Government decides to replace them, the figure may reach BGN 1 mln. The calculations are based on the financial reports of BEH in the last 2 years, available on the web site of the company. A few days ago the future PM of Bulgaria Borisov said that the management of the company would be changed, whatever the cost. The motive is that the 5-year contracts of the five members of the board include a condition for a 3-year prenotice. The 5 members are the chairman Galya Tosheva, Dimitar Dimitrov, Bulgargaz’s chair Dimitar Gogov, Tencho Popov, who is ex-secretary general at the Finance Ministry of Milen Velchev, and Boris Petkov, executive of the state-owned company for radioactive waste. If they are discharged they would have to receive their salaries for the next 3 years. In 2007 the total sum paid for them is BGN 347,000. In 2008 their salaries are lower, but they have voted themselves higher bonuses. According to calculations, the main monthly salary of each of them is about BGN 3000 on average. In case of discharge, the State would have to compensate them with about BGN 540,000 and the total expense for them would reach BGN 1 mln. For comparison, the net profit of the holding after taxes is BGN 52 mln.
Source: Sega (09.07.2009)

Chairs for BGN 2914 beheaded a mining executive The Bulgarian energy Holding (BEH) discharged two members of the board of directyors of Mines Maritsa East – Ivan markov and Gocho Hristov. However, they would not be released from responibility, the Holding said. Todor Todorov, financial officer at TPP Maritza East 2, has been appointed for head of the mines. Markov was a majority candidate from the Coalition for Bulgaria in Stara Zagora in the past elections, but he did not manage to enter the Parliamnet. The decision for the discharge was taken after a report of an expert commission of BEH, appointed two months ago. ‘The results of the audit show serious violations of the financial discipline, lack of control in planning and spending finances, lack of control in planning and implementation of the procedure under PPA, during the operative management of Mines Maritsa East SPJSC. According to the report, the profit is highly decreased as a big share of the expenses made does not correspond to the main goals and priorities of the company management.
Source: Trud (13.07.2009)

Belene Construction Site Swallows BGN 500 M “Over half BGN 1 billion have leaked out of Belene Nuclear Power Plant’s construction site into someone’s pocket. It took more than BGN 800 million to prepare the nuke’s contsruction site alone,” Bulgaria’s future Deputy PM and Minister of Finance Simeon Dyankov said in an interview. “As far as I’m informed, the same task costs the equivalent of around BGN 250 million in other countries,” Dyankov said. He pointed out that in the last months of the outgoing cabinet, the Ministry of Economy and Energy signed agreements worth billions that undermined Bulgaria’s state budget for years ahead. Future PM Boyko Borissov has forbidden outgoing Minister of Economy and Energy Petar Dimitrov to sign any contracts whatsoever. “I do not trust him, which is why I demanded that he should stop signing anything,” Borissov said.
Source: Standart (13.07.2009)

Borissov Suspends Powers of Outgoing Economy Minister Outgoing Economy and Energy Minister Petar Dimitrov has been forbidden to sign any contracts and agreements by Prime Minster designate Boyko Borisov. ‘I do not trust this person, Petar Dimitrov, and that’s why I have suspended his powers to sign any documents,’ Mr. Borissov said in an interview. He went on to say that he did not mind outgoing PM Sergey Stanishev signing an intergovernmental agreement on the Nabucco pipeline project in Ankara, today, but objected the signing of agreement on the connection of the gas transportation systems of Bulgaria and Greece. The project is expected to cost 100-150 million euros. Mr. Borissov has had a talk with Mrs. Galina Tosheva, Executive Director of the Bulgarian Energy Holding, and assured her that he would not dismantle the holding after he is sworn in as Prime Minister. Mr. Borissov gave the holding a green light to carry on with its activities and said it needn’t wait until the new Cabinet is formed, which is expected to happen on July 27. The incoming Prime Minister added that the energy holding should work to fill up the natural gas depot near the village of Chiren.
Source: Standart (13.07.2009)

Bulgaria’s national power grid operator NEK has greenlighted a proposal to form a joint venture with Hydropower Bulgaria 2009, the hydro power stat-up of local businessman Grisha Ganchev, to revamp three hydropower plants. However, the proposal sparked a big wrangle at the board of directors of the Bulgarian Energy Holding (BEH) lumping together the country’s main energy assets, including NEK, which demanded more details about the selection mechanism and the parameters of the contract. Hydropower Bulgaria 2009 was selected not through a competition or a tender but on the basis of letter of intent. NEK claims statutory rules do not require it to hold a competitive procedure and explained it is in talks with several companies that could provide the BGN 10-12 million needed to overhaul the Tazha, Vidima and Troyan power stations. If approved, the deal will see NEK making an in-kind contribution of the power capacities in exchange for a majority stake in the undertaking, while the privately-owned company will invest BGN 17 million. Iliya Terziev, board member of Hydropower Bulgaria 2009, insisted the company has built up significant experience in upgrade and operation of hydropower plants, having pumped BGN 30 million in such projects so far. He pledged the company is ready to plough at least BGN 17 million into the joint project despite the tight economic conditions.
Source: Dnevnik (13.07.2009)

Fifteen percent of state-run companies to be listed at Bulgarian Stock Exchange "Fifteen percent of the shares of the state-owned companies will be listed at the stock exchange," said finance minister designate Simeon Dyankov. This move kills two birds with one stone, as it will encourage the trade at the Bulgarian Stock and will also prevent corrupt practices in these ventures. "One of the priorities of the program of our government is to bring the stock exchange to a higher level," Dyankov added. "Currently, the state-owned companies are run by different ministries and, in most of the cases, ineffectively. Our plan is to make a common package of the shares of all companies, in which the state has a stake of fifty percent and higher. This common package of shares will be placed under the jurisdiction of the economy ministry and fifteen percent of the shares of each company in this package will be listed on the stock exchange," Dyankov explained. "This will expand two or three times the volume of trade at the stock exchange," Dyankov added. "All the companies whose shares are listed on the stock exchange are public and as such they are to report on their activities in public. This will prevent instances of conflict of interests and corruption," Dyankov said in conclusion.
Source: Standart (14.07.2009)

Mines Maritsa Iztok SPJSC, the biggest coalmining company in Bulgaria, has a new CEO since yesterday. Todor Todorov, who comes from TPP Maritsa East 2 SPJSC, was presented to the management team on Wednesday. He has been chosen by the meeting of the directors in Sofia. The board of BEH released two executives, Ivan Markov and Gocho Hristov, on July 10. The move was a result of the audit inspections at Mines Maritsa Iztok, which showed irregularities in public procurements, causing millions of BGN damage.
Source: Sega (16.07.2009)

Bulgaria might buy gas from Blue Stream Bulgaria could buy natural gas from the Russian-Turkish gas pipeline Blue Stream, the executive director of Bulgarian Energy Holding EAD (BEH EAD) Galina Tosheva said. In her words, BEH had already talked to Gazprom on the matter, but no deal had been clinched that far. Bulgaria had other options as well – receiving gas via Greece. BEH had already filed the application papers with the European Commission (EC), seeking funding for the construction of the intersystem links with Greece and Romania, worth respectively EUR 45 million and EUR 10 million.
Source: Standart (17.07.2009)

Overgas Inc. JSC, the biggest gas distributor in Bulgaria, applied for a license for storage of gas in the underground depository Galata. The company said that the depository has already been depleted. Overgas offers to construct a new depository there, which to be exploited 35 years – from 2009 to 2046. However a work group from the State Energy and Water Regulatory Commission said that as for the moment such request cannot be approved. SEWRC said that Galata depository is still functioning and its concessionaire until 2026 is Melrose Resources.
Source: Trud (20.07.2009)

A total of BGN 17 mln is the Mines Maritsa Iztok SPJSC for the first half of 2009, said the newly appointed director Todor Todorov. The long-term credits of the company are BGN 104 mln, short-term – BGN 44 mln. TPP Maritsa East 2, TPP Enel Maritza-East 3 and TPP Brikel owe a total of BGN 24 mln to Mines Maritsa Iztok. Liabilities to personnel of the Radnevo mines, which is 7500 workers, is BGN 16 mln, and it was all paid up on Wednesday, Todorov said. There would be no lay-offs until the end of the year, he added. A new financial audit would be made after the prescriptions of the previous one are implemented.
Source: Darik Radio (24.07.2009)

Bulgaria’s new energy ministry to probe into big projects The Ministry of Economy, Energy and Tourism will launch an investigation into the large-scale energy projects such as the Belene nuke plant and the Burgas-Alexandroupolis oil pipeline, said the new minister, Traycho Traykov, who took over from Petar Dimitrov on Monday. Traykov assured the new ministry would not put a single project on standby before it studies its economics and the legislative provisions. “Unfortunately, one could work effectively only for 20 hours and therefore I could not provide a concrete timeframe for checking the large-scale infrastructure projects,” Traykov explained, adding that most importantly they should be profitable for Bulgaria and benefit the Bulgarian citizens. The new minister said he has already proposed the members of his team but the candidacies are still pending approval and his deputies are most likely to be announced by the end of the week. “My colleague definitely takes up the toughest ministry at a very tough time,” said Petar Dimitrov. Excluding the effects of the economic turmoil, Bulgaria boasts some of the most favourable economic climate, he stated. Traykov turned out to hold a different view, saying one of the top priorities of his ministry will be polishing the country’s reputation as a symbol of corruption, which is seriously undermining business climate. Petar Dimitrov expressed hopes the new administration will preserve the structure of the Bulgarian Energy Holding (BEH), which now lumps together the country’s main energy assets, saying it “very much facilitates energy management in the country.” “BEH should be listed on the stock exchange and there is no question about it; the problem is that this cannot happen immediately,” Traykov said. He was adamant that the Sofia heating utility should go private but provided neither timescales, nor possible methods.
Source: Dnevnik (28.07.2009)

Bulgaria Rightist Leader: Belene NPP Project Should Be Frozen The new Chair of the Parliamentary Committee on Economy, Energy, and Tourism, has called for Bulgaria's second nuclear power plant project at Belene to be frozen. Dimitrov, one of the leaders of the rightist Blue Coalition, and leader of the United Democratic Forces (UDF), stated Thursday that the state should not have to support the Belene NPP project and that instead they should find private investors. According to Dimitrov the project will cost a lot of money and in this time of crisis could de-stabilize the country's economy. Some EUR 430.5 mln have been spent so far by the Bulgarian state in preparation for the construction of the country's second nuclear power plant at the Danube town of Belene. The figure was made public on July 17 by the press service of the Ministry of Energy and Economy. Of these, EUR 161 mln have been spent for developing the technical project; EUR 78 mln - for the clearing of the construction site; EUR 89.5 mln for the purchase of long-term equipment; EUR 90 mln have been spent for paying consultants - WorleyParsons, Deloitte, Paribas; and EUR 12 mln - for paying off interest on a BNP Paribas loan.
Source: Novinar (31.07.2009)

Bulgaria’s top-notch energy assets have rounded off the first six months of the year bleeding red ink, showed the consolidated report of the Bulgarian Energy Holding (BEH), which lumps them all together. The national power grid operator NEK, its subsidiary Electricity System Operator (ESO) and mining company Maritsa Iztok mines have accumulated a loss of BGN 98 million from January to June, widening from BGN 42 million, BGN 37 million and BGN 19 million, respectively, from the previous month. For the entire 2007, NEK booked a net profit of BGN 34 million and Maritsa Iztok netted BGN 8 million. The deterioration was attributed to the unfavourable business environment of an economy ravaged by recession, according to report of the holding company published yesterday. NEK, which holds a power trade licence, has sold slimmer volumes both on the domestic and on the foreign markets. This was coupled with lower export rates dragged by softened demand in neighbouring countries.
Source: Dnevnik (04.08.2009)

Bulgaria’s top energy projects wasteful and piecemeal Bulgaria’s major energy projects, such as the Belene nuclear power station, have been developed by a “piecemeal” approach, without feasibility analysis or a clear funding idea, while taxpayers’ cannot account for the heaps of money ploughed there, said Traycho Traykov, the new minister of economy, energy and tourism, at his maiden media briefing. The ministry’s top priority by the end of the year will be salvaging from the red its patchy budget. Options on the table include privatisation of tobacco monopoly Bulgartabac Holding, the Sofia heating utility and possibly the minority government holdings in power distributors. Another variant is floating on the stock exchange a portion of the capital of the Bulgarian Energy Holding (BEH), the catch-all structure for the country’s best energy assets. A total of EUR 430 million has so far been splashed out for preparation of the site, consultation, payments to the contractor and ordering of equipment for the 2,000 MW nuclear power station, Bulgaria’s second, which is designed to offset the lost generating capacity from the early closure of two pairs of 440 MW reactors at the country’s sole nuclear power station in Kozloduy at end-2002 and end-2006, respectively, as part of the country's EU accession commitments.
Source: Dnevnik (04.08.2009)

International Energy Projects to Drag Bulgaria out of Crisis Ilian Vassilev, chairman of Deloitte Bulgaria and expert in energy projects. - Mr. Vassilev, EU’s pipeline project Nabucco is beginning to make progress. Apart from the opera name, what else does Nabucco stand for? - Nabucco is EU’s declaration of pursuit for energy independence and diversification of the energy resource suppliers… Nabucco is an expression of EU’s self-confidence and determination to take words to action. But apart from natural gas sources, it seems to me it would be very difficult to match the stakeholder interests of participant countries. - What about Bulgaria’s role in the project? Are the Bulgarian institutions and companies ready to play successfully and on an equal footing with the other participants in such a large-scale transnational project? - Bulgaria has a key role to play – both in Nabucco and South Stream. Unfortunately, we’re not writing our lines on the European and global agenda on the subject by ourselves. What is worst is that Bulgaria only seeks to gain from transit fares and other “peanut” benefits for this company or the next. We are not taking actually advantage of the opportunity to drag Bulgaria’s economy out of the crisis and expand the scope of the participation of its institutions and companies along the entire value added chain, both at home and abroad. Nabucco and South Stream are a unique opportunity to master the art of managing our participation in the globalization process in our own interest. But, accomplishing this, takes some adequate preparation of the Bulgarian governmental and non-governmental institutions and corporations. - Are Nabucco and South Stream rival projects? Moscow has already expressed the apprehension the new Bulgarian government would turn a cold shoulder to South Stream? - Emotions can be dangerous when dealing with energy policy. I consider these projects only through the business point of view, I think as time passes differences will get smaller and smaller. Consumers will not accept any extreme price which is the meaning of diversification. The absence of alternatives drastically lowers the chances the consumers have to influence the decisions of the monopoly suppliers.
Source: Standart (06.08.2009)

The government will discuss in Wednesday whether to return the projects for the Bourgas-Alexandrupolis oil-pipe’s construction in the Bulgarian energy holding. The suggestion was made by the construction minister Rosen Plevenliev. The holding quit the planned company which is to construct the oil-pipe on Bulgarian territory with the Stanishev government’s decision, motivated by the fact that the crisis imposes reconsideration of investment. Till the end of May the Bulgarian participation was shared by Bulgargas and Technoexportstroy, as the latter was granted the whole share of 24.5 % in the project and paid BEH’s subsidiary company about BGN 3 million for the expenses made on the project.
Source: Novinar (12.08.2009)

Bulgarian electrical energy exports dropped by nearly 30% in the first six months of 2009 year-on-year. This was announced Friday by the Bulgarian Energy Holding (BEH), as cited by Darik Radio. The losses of two of the companies in the holding - Mini Maritsa Iztok EAD and National Electrical Company (NEK), for the same period are close to BGN 60 M, the financial result of the first 6months of 2009 showed. As a whole, BEH has considerably improved its financial condition compared to 2008. The net profit of the holding in the first half of 2009 was BGN 160 M, while for the whole 2008 it was BGN 86 M. The electricity export in the first six months of the year decreased by 28,4% from 2,16 million MWh in the middle of 2008 to 1,5 million MWh in July 2009.
Source: Darik Radio (17.08.2009)

Three of the companies in Bulgarian Energy Holding (BEH) posted losses for the first half of 2009. National Electric Company logged the biggest loss, BGN 44.2 million, followed by Maritsa Iztok Mines (BGN 17.3 million) and Bulgartel (BGN 0.17 million). The holding as a whole, however, booked a BGN 226.4 million pre-tax profit, up 35.4% year on year. Income rose by BGN 271 million to BGN 2.577 billion.
Source: Pari (17.08.2009)

Power exports shed more than a quarter in Jan-Jun’09 The National Electric Company (NEK) exported 28.4% less electricity in the first six months of the year, shows the consolidated report of the Bulgarian Energy Holding (BEH), the mega structure that groups major state-run energy assets. The dwindling exports have vitiated the power company's performance plunging it into a first-half loss of BGN 42.2 million from a year-ago profit of more than BGN 21 million. The softened demand and the energy surplus have dragged prices at which NEK sells electricity to southeast European partners below 0.03 euro per kWh making exports inefficient and gnawing at the power export monopoly's profitability. At the same time, sales revenue which used to offset NEK's losses on the regulated segment, contracted by 44.2% in January to June, as sales on the free market have taken a slide, too. Domestic electricity consumption shrank by 5% following the 20% fall in industrial production in the first half of the year, with 22% higher sales of power distributors CEZ Electro, EVN and E.ON providing no significant relief. Furthermore, the pricing decisions of the energy regulator were detrimental to the electric company turning it into a social buffer and pushing it into the red, BEH said. Two more units of the energy holding, the Maritsa East coal mines and Bulgartel, the telecoms arm of gas major Bulgargaz, posted first-half losses of BGN 17.3 million and BGN 170,000, respectively. The mining company, which has low labour productivity, sank due to a 28.8% surge in fuel and raw material costs, while Bulgratel attributed its loss to the slump in wholesale telco services. Bulgargaz, on the other hand, reversed its BGN 93 million loss to a BGN 52.8 million profit on the back of a 3% mark-up cleared by the regulator. Natural gas consumption in Bulgaria dropped by 20% in the first half of 2009 but the decline was smaller than in Romania and Greece, the holding company said. Nevertheless, BEH, which consolidates the country's sole nuke plant in Kozloduy, Maritsa East 2 coal-fired power plant, Maritsa East coal mines, NEK, Bulgargaz, Bulgartransgaz and Bulgartel, pulled off a BGN 226.4 million profit for January to June, a result that would have been higher should its units operated in a more favourable regulatory framework, the group said.
Source: Dnevnik (17.08.2009)

Bulgarian Maritsa East coal mining company will terminate detrimental contracts and transactions to the tune of BGN 32 million in a bid to keep its staff intact, executive director Todor Todorov told. The new management, which was appointed a month ago by the Bulgarian Energy Holding (BEH), conducted an audit and found out misuses and lack of control in public procurements, which resulted in contracts suspension. The check led to the dismissal of former executive directors Ivan Markov and Gocho Hristov and the appointment of the incumbent head Todor Todorov who is ex-financial director of another state-owned energy firm, the Maritsa East 2 coal-fired power station. Todorov announced he has requested a second internal inspection on the transactions and warned he would notify the investigation and the prosecution offices if the check gives new embezzlement data. The mining company sank into a BGN 17.3 million loss in the first six months of the year, shows the consolidated statement of BEH which lumps together top-notch energy assets. The poor result was attributed to the rising costs of fuels and spare parts and sizable sub-contracts. Todorov called for a more flexible pricing mechanism as the coal prices are currently pegged to an annual efficiency indicator set by the energy minister. The mining company has an onerous debt burden of more than BGN 100 million, of which BGN 12 million are BNP Paribas loans with an approaching maturity. The mines are in talks with the lender to defer the due installments. On the other hand, the three power plants in the Maritsa East basin collectively owe BGN 29 million to the mining firm.
Source: Dnevnik (18.08.2009)

The question about listing some of the capital of Bulgarian Energy Holding (BEH) or its companies on the Bulgarian Stock Exchange (BSE) has not received a categorical answer yet, a Pari daily's inquiry shows. BEH is not so well structured, so it is better to list separate companies of the holding, the chairman of BSE's board of directors, Viktor Papazov, said. BenchMark Asset Management CEO Petko Valkov, however, thinks it is uncertain whether separate companies could be offered for trade. Our main idea is to unite state-owned stakes in different companies into a single holding and list it on the BSE, deputy finance minister Vladislav Goranov told the Pari daily before the July election. It is easier to list the holding but it is better to list separate companies, because financial accountancy and strategy are better on a corporate level, finance minister Simeon Dyankov said after the government took office. Whichever option is chosen, the capital market will be given a strong impetus, analysts are unanimous. I expect increased interest in the state-owned companies that will be offered for trade on the BSE, Papazov forecast. Companies that may get listed are BEH's Bulgargas, National Electric Company, Sofia's heating utility, Maritsa Iztok Mines. The main problem is that they are currently banned from privatisation and nobody dares to say how long it will take to make them public.
Source: Pari (20.08.2009)

Bulgaria’s coal-fired power plant Maritsa East 2 posted a profit of BGN 59.6 million for the first six months of 2009, showed the consolidated report of the Bulgarian Energy Holding (BEH), the catch-all structure for the country’s top-notch energy assets. The increase by BGN 34.2 million helped the plant outperform Kozloduy nuke plant, which booked a profit of BGN 54.3 million. The increase was backed by the higher electricity prices that came into effect from July 1, 2008, which is purchased under a five-year agreement thanks to the construction of flue gas desulphurization units at reactors five and six on a project bankrolled by the European Bank for Reconstruction and Development (EBRD). The performance was helped also by the completed upgrade of units one to four at the nuclear facility, which will enable an increased output without extra coal. Speaking to the state-owned Bulgarian National Radio (BNR), former energy minister Roumen Ovcharov credited the company’s better efficiency on the low price of coal supplied by the Maritsa East mine complex. Meanwhile, Kozloduy executive director Ivan Genov told BNR he will submit his resignation on the first days from returning from holiday. Last week energy minister Traycho Traykov stated that the power trading contracts for the unregulated market do not fully defend the company’s interests and power traders have been selected by vague criteria. “I’m not shirking responsibility,” Genov replied, pointing out that the nuclear plant is in good financial health thanks to both supplies to the domestic market that helps it offset losses and the company’s staff. He said he has spent 29 years at the facility.
Source: Dnevnik (24.08.2009)

From the beginning of the year the National electric company’s sales have decreased by 8 %. At the same time, the company cut its expenses by 2 %. The situation is grave, so Bulgarian energy holding considers passing on to crisis management, which will let companies minimize their losses and to register profit. The examination is still under way, but in BEH’s opinion the unprofitable tendency in NEC’s management is even deepening. In the last few weeks several meetings with the management of BEH’s subsidiary companies were initiated, in consideration of the companies half-year financial statements. The common opinion is that the results are more than unsatisfactory. NEC’s bad management was exemplified by the credit amounted to EUR 250 million, granted in normal economic conditions for APP Belene’s construction. Because of unimplemented conditions, the rate of the credit jumped from % to 8%.
Source: Darik Radio (25.08.2009)

The two executive directors of the National Electric Company (NEK), Lyubomir Velkov and Mardik Papazyan, will be dismissed by this week's end. The decision will be voted at a board of directors meeting of Bulgarian Energy Holding (BEH). Members of NEK's board may also be fired. NEK's managers did not take measures to reduce the company's expenses and losses, BEH said. The holding even accused the two heads of negligence of duty. According to BEH board of directors chairman, Tencho Popov, the cost price of electricity had to be cut as a measure against losses. NEK's only excuse for the losses is that it sold power on the regulated market at a loss, which is unacceptable, Popov pointed out. The current economic situation requires crisis management techniques to curb losses and no such measures were applied. Instead, an interim check-up showed that NEK's sales slumped 8%, while expenses were reduced just 2%. NEK's losses for the first half of 2009 amounted to BGN 42 million, Popov went on to say. An example of poor management is a EUR 250 million loan from BNP Paribas, which became executable because of omissions made by somebody at NEK. As a result, the company had to close an agreement with the bank but the interest rate jumped eight-fold. By this week's end BEH will also decide on the resignation of the executive director of Kozloduy nuclear power plant, Ivan Genov. Most probably it will be accepted.
Source: Pari (25.08.2009)

The executive officer of NPP Kozloduy Ivan Genov sent his resignation to Bulgarian Energy Holding. It would most probably be accepted until the end of the week as he no longer wishes to head the company. The two executives of National Electricity Company (NEK) Lyubomir Velkov and Mardik Papazyan would also be fired. They have not taken cost cutting measures amid the economic turmoil, officials from BEH said. The inspection in NEK conducted by BEH continues. The main charge over the power company management is that costs have been cut by 2 percent as sales decreased by 8 percent in the first half of 2009.
Source: Trud (25.08.2009)

Management of the energy holding to be also changed Minister of Economy Traicho Traykov said that there is an option to replace the management of Bulgarian Energy Holding (BEH). The holding was founded last year and unites Mines Maritsa Iztok, TPP Maritsa East 2, Nuclear Power Plant Kozloduy, National Electricity Company, Bulgargaz and Bulgartransgas. Mr. Traykov added that the members of the board of directors would be reduced from 5 to 3. The deputy chair of the board Tencho Popov is likely to be the first one replaced. Traykov did not disclose the future of the current executive of BEH – Galina Tosheva.
Source: Novinar (26.08.2009)

Wind’s power may free Bulgaria from energy dependence. The country is among the best places in the world for generation of power from wind. Investors’ interest towards power generation is present, but legislative obstructions and limited capacity of the national electric network slow down construction of wind parks. According to European bank for reconstruction and development, Bulgaria may develop capacity of 3 400 MW in few years. Bulgaria is dependent on energy resources’ import, as it covers most of its energy needs via import from Russia. Moreover, we should add the electricity, generated by water power plants, the atomic power plant in Kozlodyu, as well as the planned new capacities in the future APP Belene. With the help of wind, however, Bulgaria may generate as much power, as the two atomic power plants altogether.
Source: profit.bg (27.08.2009)

Bulgarian energy holding’s five members of the Board of directors will leave the boards of the subsidiary companies, in which they participate. Traicho Traikov, the minister of economy, energetics and tourism said that the number of members in Boards of directors will be reduced, and consider changes in BEH’ board possible, too. In Tuesday, BEH appointed the new management of APP Kozloduy and reduced its board. This is expected to happen with the board of the National electric company, as well.
Source: Dnevnik (27.08.2009)

Borissov and Putin Discuss Future of Energy Projects The ice between Sofia and Moscow is beginning to break as a phone conversation between Bulgaria PM Boyko Borissov and Russia PM Vladimir Putin on the hot topic of Bulgaria’s frozen major energy projects took place today. The two Heads of Government discussed the future possibilities for strengthening their countries’ traditionally good diplomatic relations, and more specifically – the implementation of the South Stream and Burgas-Alexandroupolis pipeline projects as well as the construction of Bulgaria’s second nuke at Belene. “We are currently scrutinizing the details on every contract we have made,” Borissov clarified. Borissov and Putin agreed to continue the active talks on major projects, and to commission experts of both countries to speed up the projects’ coming into being, Council of Ministers sources disclosed. Borissov offered his Russian counterpart that the regular session of the Intergovernmental Working Committee be held earlier than initially scheduled, and take place in Sofia in the autumn instead of Moscow in November. Both Borissov and Putin expressed their willingness to meet personally as soon as they may chance.
Source: Standart (28.08.2009)

Bulgarian energy holding is absolutely obsolete, so its activity may stop in two weeks’ time in the Prime minister words. The minister of economy, energetics and tourism will analyze its operation and will assess its activity. The energy holding, which unites energy companies in the country, was founded in September last year with decision of the Government Stanishev. It unites the National electric company, Bulgargas holding, APP Kozloduy, TPP Maritsa East 2 and mines Marista-east, Energy system operator and Bulgargas’ subsidiary companies- Bulgargas, Bulgartsansgaz and Bulgartel. BEH is a joint-stock company with 100% state participation.
Source: Pari (31.08.2009)

The Bulgarian Energy Holding (BEH) elected Friday a new Board of Directors of its subsidiary, the National Electric Company NEK. During Friday's meeting of the Board of Directors of BEH, the Board of NEK was reduced from five down to three members. The three new directors of NEK are Evgeni Angelov, Georgi Mikov, and Mihail Andonov. Angelov was born in 1975. He has a BA in information systems from Guildhall University, UK, and MBA from Harvard Business School. He has worked for the European Bank for Reconstruction and Development. In 2008, he founded Attria Capital, a shareholders investment fund for Southeast Europe, and became its CEO. He is also the founder and director of another company - New Energy Partners - dealing with renewable energy projects. Angelov was recently appointed Deputy Minister of Economy, Energy, and Tourism. Georgi Mikov was born in 1963. He has a degree in electrical engineering, and a MA in business administration from the American University in Bulgaria. He has been working at NEK since 1991. Since 2005, he is a member of the governing board of the Czech-owned electricity provider, CEZ Bulgaria Jsc. Mihail Andonov was born in 1960. He has a degree in industrial economy. He has worked at NEK's Audit and Internal Control department, since 1998, and since 2002 has been the deputy chief accountant of the company. On Monday, BEH announced that the two CEOs of the National Electric Company, Lyubomir Velkov, and Mardik Papazyan had been fired over failure to act in order to cut the company's losses from the economic crisis.
Source: Darik Radio (31.08.2009)

The government plans to list 15% of each company in the Bulgarian Energy Holding (BEH) on the BSE and to introduce as quickly as possible an on-line control system in tax and customs storehouses, Simeon Dyankov, financial minister and deputy prime minister, said on bTV. In his opinion, the reforms in the customs have given results. He also promised to stop unjustifiable expenses in the energy sector.
Source: Pari (01.09.2009)

15% of the subsidiaries of the Bulgarian Energy Holding (BEH) will be placed on the exchange, said Finance Minister Simeon Diankov. Holding does not work and the option is that it be closed and percentage of companies operated by him to be placed on the stock exchange and their activities must be transparent, "he explained. Holding was established in September last year by the cabinet "Stanishev" and it included NEK, Kozloduy NPP, TPP Maritsa Iztok 2 "Maritsa East" Bulgargaz with its subsidiary companies Bulgartransgaz and Bulgartel, the Energy System Operator (ESO).
Source: Novinar (01.09.2009)

Georgi Mikov has been unveiled as the new Executive Director of the National Electric Company NEK. Georgi Mikov was born in 1963. He has a degree in electrical engineering, and a MA in business administration from the American University in Bulgaria. He has been working at NEK since 1991. Since 2005, he is a member of the governing board of the Czech-owned electricity provider, CEZ Bulgaria Jsc. Mikov takes his position after the Bulgarian Energy Holding (BEH) elected Friday a new Board of Directors of its subsidiary NEK. During Friday's meeting of the Board of Directors of BEH, the Board of NEK was reduced from five down to three members. The three new directors of NEK are Mikov, Evgeni Angelov and Mihail Andonov. Earlier Tuesday Finance Minister Simeon Djankov announced that a 15% stake in NEK and dominant gas supplier Bulgargaz will be listed on the Bulgarian stock exchange. Last Monday, BEH announced that the two CEOs of the National Electric Company, Lyubomir Velkov, and Mardik Papazyan had been fired over failure to act in order to cut the company's losses from the economic crisis. The losses are expected to reach BGN 76 M by the end of the year. Bulgaria's Prime Minister, Boyko Borisov, announced Friday morning that his government was going to shut down BEH which was formed as a mega energy structure by the Socialist government in 2008, uniting all major state-owned energy companies.
Source: Standart (01.09.2009)

Borissov, Putin meet to talk on energy business Russian prime minister Vladimir Putin will hold his first meeting on September 1 in Gdansk with his Bulgarian counterpart Boyko Borissov, Yuri Ushakov, deputy head of government staff said as quoted by Russian news agency ITAR-TASS. The meeting will form part of events marking the 70th anniversary of World War Two. Putin will also meet his counterparts Yulia Tymoshenko of Ukraine, Jan Peter Balkenende of the Netherlands, Matti Vanhanen of Finland, Jadranka Kosor of Croatia and Borut Pahor of Slovenia. Western media point out that Putin will shake hands with the premiers of the countries where Russia has energy interests. Ukraine hosts the main sections of Russia’s pipeline pumping gas to Europe, while the other countries are linked with the North Stream and South Stream gas pipes. Dutch company Gasunie holds a 9% stake in the project company that will develop the South Stream pipeline that should cross Finland’s territorial waters. Croatia and Slovenia are potential participants in the South Stream scheme. According to Ushakov, Borissov, who recently said Bulgaria could balk out of a string of joint Russian projects, is ready to hold constructive dialogue.
Source: Dnevnik (01.09.2009)

The Bulgarian Energy Holding, a mega-structure, which groups all big state-owned energy firms, but has been marked for closure by the new center-right government, said net profits rose by BGN 29.3 mln in July. Net profits increased by 29.3% on an annual basis, towering to BGN 57.9 mln, helped by the improved financial performance of four of the companies that go into the holding and a slow-down in losses incurred by the national electricity distribution company NEK. EBITDA rose to BGN 255.8 mln, while operating income marked a 12% rise. The holding was created in 2008 with the merger of five state-owned companies into a EUR 4 bln energy giant.
Source: Darik Radio (03.09.2009)

Income of the Privatization Agency for 2009 and 2010 may reach BGN 880 mln if the State manages to sell Bulgartabac Holding JSC, Heat Supply-Sofia SPJSC, Vazov Machine Works SPJSC, Kintex SPJSC and its minority stakes in the electricity distribution companies. The Agency reported BGN 17.6 mln income for the first half of 2009 blaming the financial crisis and the lack of investors interest. PA said that the companies included in BEH may also be considered for privatization at a later stage, but such move is not planned for the time being.
Source: Monitor (03.09.2009)

Bulgaria's Government to Recalculate Belene Nuke Costs within 3 Months It will take three months for the experts of the Minister of Energy to calculate the actual cost and the potential profit of Belene NPP. In November Bulgaria PM Boyko Borissov will respond to his Russian counterpart Vladimir Putin if Bulgaria's cabinet is in support of the project, it became clear from Borissov's words in an interview with the Bulgarian National Television. PM Putin and PM Borissov had a talk in Gdansk on Tuesday. Putin demanded a quick answer as to whether the energy projects would be implemented or not. Borissov was categorical that he favoured South Stream. "We agreed with Prime Minister Putin that Bulgaria will be ready with the financial planning of Belene NPP by November. Until then, our experts will do the calculations. We will inform the public if the project is worth it when we finish the calculations," Borissov said. To his words, the previous government did nothing on the implementation of Belene NPP or Bourgas-Alexandroupolis pipeline projects, besides making 250 million euro vanish into thin air. "In three months, when the Bulgarian-Russian intergovernmental commission will have a sitting in Sofia, there will be a categorical answer as to South Stream, Bourgas-Alexadroupolis and Belene NPP will be continued," Borissov said explicitly. Borissov clarified that Putin never tried to press him during their talk.
Source: Standart (03.09.2009)

Russia Eager to Finalize Belene NPPFinalize Russia is pushing hard to finance the construction of Bulgaria's Belene Nuclear Power Plant, it became clear from the words of Russian Deputy Prime Minister and Minister of Finance Alexey Kudrin. Kudrin stated that Vladimir Putin's cabinet was seriously considering the application for financing the construction of Belene NPP. "The precise sum Russia will release from its state budget will become clear during the negotiations," Kudrin clarified.
Source: Standart (04.09.2009)

Sofia Does Not Believe in Tears, Too It seems that the game is getting tough. Although in a nice tone, in Gdansk Russia's PM Vladimir Putin wagged a finger at Sofia. The warning that Russia might exclude Bulgaria from some of its big energy projects is, in fact, a threat. And an ultimatum to Sofia to decide quickly and in favour of the cooperation with Russia or otherwise it will be weeded out of the projects. And this will be the end of Bulgaria's dream to become an energy center on the Balkans. Forgive me the cliche, but this "dream" seems to have lost it's meaning long time ago. Obviously, Moscow is nervous. One small country like Bulgaria, entirely dependent on the Russian energy supplies, feels free to send from pillar to post a world energy power as Russia; to keep it at bay on projects worth billions and which have vital importance to Russia's economy, politics and geostartegic plans for the future. How come Sofia dares to behave so impertinently!? And who the hell is Boyko Borissov to let himself such frivolities? This first foreign policy collision, in which the new Bulgarian government is a party, will, to a great extent, reveal who the new Bulgarian PM is. Borissov's first reaction while listening to Putin's "sermon", gives hopes. Yes, the new Bulgarian government should clearly know what the commitments made by the former Sofia cabinet are and the reason is understandable: with the exception of the statement that the negotiated projects are an energy "grand slam" for Bulgaria, there's not a single proof that these deals defend the Bulgarian national interest. And not only the government should know the truth, the whole Bulgarian public should be convinced that Bulgaria will benefit from these projects as well as that the country can afford being part of them. And only if a project meets these two criteria, it can be defined as acceptable for Bulgaria. These requirements immediately exclude the largest of the projects - the construction of the Belene nuke. The country can't afford the implementation of this project without the participation of private investors. The new Bulgarian PM will win this battle only if he succeeds in resisting both Moscow's pressure and provocations, and these of the powerful Russian energy lobby in Bulgaria. It will be then that Bulgaria will prove that Sofia, "does not believe in tears", too.
Source: Standart (04.09.2009)

The deal for purchase of 77 luxurious automobiles made by the Bulgarian Energy Holding (BEH) is illegal, said energy minister Traycho Traykov. The deal is worth BGN 5 mln. A week ago it appeared that the energy megaholding has signed the deal for the vehicles without a public procurement procedure. The Public Procurement Agency said that it is not quite clear whether one should take place. BEH commented that no public procurement has been announced but the deal has been signed according to the regulations of the holding. They added that the autos are mainly for the needs of BEH’s subsidiary Bulgartransgas. Traykov said that this is exactly why a public procurement procedure should have been appointed.
Source: Novinar (09.09.2009)

Borissov Should Defend the National Interests Georgi Parvanov, President of the Republic of Bulgaria Bulgaria needs leadership in its energy policy, as well as continuity of its energy strategy. Over the past few weeks, Russia has tried to reopen talks on some already decided issues. Instead of stating that everything is fine with South Stream, PM Boyko Borissov should have used the meeting with his Russian counterpart Vladimir Putin to object such pretensions. It is inexplicable why the Prime Minister and his team did not raise the question about a new long-term contract with Gazprom under better and more flexible conditions for the supply of natural gas to Bulgaria until 2030. Maybe Borissov's Cabinet is satisfied with the existing contract, which probably allows them to draw dividends at the expense of the Bulgarian taxpayer? The global economic crisis is not an argument against but rather for the construction of NPP Belene. The government are mulling over this half a billion necessary to launch the construction of the power plant this year, but they did not hesitate to give the green light to the Gorna Arda project, which also costs half a billion euro? The fact that the economy minister is also a representative of one of the major contractors of Gorna Arda to a great extent accounts for the speed with which the project was started. It also seems that the incumbent government is not competent enough as regards the energy policy - the leader does not have to be informed about everything, but the decisions he takes should be well-grounded.
Source: Standart (09.09.2009)

EC Pays Bulgaria Another E300 M for Kozloduy Nuke Closure The European Commission will pay Bulgaria another 300 million euros as a compensation for the closure of units 3 and 4 of Kozloduy Nuclear Power Plant – Bulgaria’s only nuclear facility. The news came from Bulgaria’s economic minister Traycho Traykov who is currently on Prime Minister Boyko Borissov’s delegation to the European Commission. The compensation amount will come from the crisis management fund of the European Union. The delegation arrived in Brussels yesterday and will spend two days there. The first meeting of the Prime Minister was with the head of the European Anti-Fraud Office Franz-Hermann Bruner. Another Bulgarian delegate – Regional Development and Public Works Minister Rossen Plevneliev – said that Brussels was well informed of all the actions the Bulgarian cabinet has taken and expressed hope an agreement would be reached on a one-year expansion of the deadline for the implementation of ISPA projects that are significantly delayed. A plan for Schengen entry requirements implementation was signed yesterday by two deputy prime ministers: Minister of Interior Tsvetan Tsvetanov and Minister of Finance Simeon Djankov. “We must absorb the EU funds for border monitoring technology as soon as possible otherwise we will have to pay it from the national budget,” Tsvetanov said.
Source: Standart (10.09.2009)

The Executive Director of the Bulgarian Energy Holding (BEH) Galina Tosheva has entered an application to be exempted from the Board of Directors of Mines Maritsa Iztok. From now on the board of the company will consist of three members instead of five. The Board adopted her request without quitting of responsibility. The termination of the contract of Galina Tosheva enters into force on 8 September, when the decision is expected to be registered in the Commercial Register.
Source: Dnevnik (11.09.2009)

Big Slam for Bulgaria's PM in Brussels Brussels has unfrozen all funds under the Sapard program for Bulgaria. The news came on the second day of the official visit of Bulgaria's PM Boyko Borissov to Brussels. "It has to be clear that I will defend every euro from the EU funds for Bulgaria," stated PM Borissov during his meeting with the newly elected President of the European Parliament Jerzy Buzek. Before leaving for Brussels, PM Borissov stated that the “defrosting” of EU funds for Bulgaria would be his key priority. The EC decision means that by the end of 2009 Bulgaria will have to absorb 156 million levs under Sapard. Borissov expressed his gratitude for the support of the European institutions to Bulgaria and the Bulgarian citizens who do not deserve to be called "the poorest and most corrupted in Europe." Borissov and Buzek discussed Bulgaria's energy policy as well as the implementation of Nabucco and South Stream projects.
Source: Standart (11.09.2009)

EC President Lobbies for Additional Compensations for Kozloduy NPP "The next 6 months are extremely important for the relations between Bulgaria and the EC. The EC will engage itself to submit a proposal in the European Council and the EP for the release of additional compensations of 300 million euro for the pre-term closure of units 3 and 4 of Kozluduy NPP," stated EC President Jose Barroso during his meeting with Bulgaria’s PM Boyko Borissov. "Mr. Barroso has given his full credit to the actions of Bulgaria’s new cabinet and PM Borissov in their fight against corruption and organized crime," Bulgaria’s Foreign Minister Rumyana Zheleva stated for the Standart. Mr Barroso has also stated that Bulgaria’s efforts for receiving additional compensations for the decommissioned units of Kozloduy NPP should be supported.
Source: Standart (11.09.2009)

Belene NPP Sold out as Swarf The Belene Nuclear Power Plant (NPP) has been sold as swarf. The large-scale fraud was committed while power in Bulgaria was changing hands : Sergei Stanishev's cabinet had already stepped down and that of Boyko Borissov's hadn't taken the helm yet. Metal materials used in the construction of the Belene NPP foundation have been sold as scrap three times. The state budget has suffered damages standing at BGN 1 million. "The Economy department of the Criminal Police revealed the fraud. The Ministry of Interior and the Ministry of Economy carried out the checkups," announced Minister of Interior Tsvetan Tsvetanov. In the period between April 23 and August 28, the National Electric Company (NEC), which owns 51% of the Belene NPP shares, resold the expensive equipment for a song. It all began with 9 thous tons of scrap. The first purchaser was VDK 1. The valuer of the announced for sale blocks and steel pipes is Mini Consult – M LTD, manged by Liliana Hristova. However noone of the valuers showed at the site to actually evaluate the stock. Meanwhile the contract is added an annex claiming that the blocks and pipes are swarf. No such swarf was present. Thus, the valuer cuts the price to the ridiculous BGN 160 per ton of scrap. The sale goes through the Sofia Commodity Exchange. After deduction of the transportation costs, the price fell to BGN 110 per ton. And this is the beginning of ruthless sales. The next purchaser is Evrometal, related to Lyudmil Stoykov. The company paid BGN 280 per ton but also sold the metal with profit. The last of the purchasers is Stomana Industry SA paying over BGN 300 per ton, which is the realistic price, prosecutors said. In the period May 24 – August 16 the price of a ton of scrap varied between BGN 284 and BGN 304. If the sale was legal, the metal ought to have left the Belene site at this price. The documentation on the case has been submitted to the Prosecutor's Office.
Source: Standart (17.09.2009)

Russia Ready to Buy out Bulgaria's Share in Belene Nuke Russia showed a growing interest in Belene NPP only a day after Bulgaria's Minister of Economy and Energy Traicho Traikov informed that Bulgaria was ready to keep only a small share in the project. "Moscow wants to hold negotiations over the purchase of Bulgaria's share in Belene NPP," stated yesterday Russia's Energy Minister Sergey Shmatko. The day before yesterday, Minister Traikov underscored that Sofia would give a chance for the realisation of the Belene NPP project. However, he was explicit that this should not be paid with taxpayers' money. The Borisov-led cabinet intends to find a new formula for financing the construction works. "The main option for Bulgaria is to reduce its share from 51% to 20%," Mr Traikov said. In minister Traikov's opinion, the Belene project should be open to smaller investors, too. The possibility that Russia acquires part of Bulgaria's share in the project will probably be discussed at tomorrow's meeting between Bulgaria and Russia energy ministers. The meeting is at the initiative of Bulgaria Energy Ministry. The director of Russia's state corporation Rosatom Sergey Kirienko will also take part in the meeting.
Source: Standart (17.09.2009)

PM Borissov Asks Brussels for Compensations on Kozloduy Nuke Bulgaria's PM Boyko Borissov will ask Brussels for a 150-million euro compensation for the decommissioned units 3 and 4 of the Kozloduy NPP. This is one of the main issues on Borissov's agenda in the negotiations with the European leaders today. Bulgaria's PM will leave for Brussels to take part in a special meeting aimed at harmonizing a joint anti-crisis strategy. However, during his previous visit to Brussels PM Borissov came to an agreement with the president of the EC Jose Manuel Barroso to put forward before the EC a proposal for additional compensations for Bulgaria. Today PM Borissov will have talks with Jose Barroso about Bulgaria's new European commissioner and his/her sphere of responsibility.
Source: Standart (17.09.2009)

Sofia, Moscow agree to speed up South Stream gas pipe The governments of Bulgaria and Russia will accelerate work on the South Stream gas pipeline project in the next two months. Bulgarian prime minister Boyko Borissov and energy minister Traycho Traykov met with Russian energy minister Sergei Shmatko and agreed that the two countries will go ahead with the pipeline which will carry Russian gas to Italy and Austria. The Belene nuke project and the Burgas-Alexandroupolis pipe, which will pump Russian oil into Greece, also remain on the drawing board. Two working groups will be formed to draw up the articles of association of the future project company and prepare the pre-feasibility study for the South Stream scheme. The Russian side rejected claims by Bulgarian president Georgi Parvanov it is interested in buying out the 50% stake the Bulgarian Energy Holding (BEH) will hold in the project company, the rest being in the hands of Russian gas mammoth Gazprom. In the past months, the project with a price tag of some EUR 25 billion got new momentum after Turkey sealed an agreement with Russia. Bulgaria and Russia agreed to carry out a legal and financial audit into the contracts for the construction of the Belene nuclear power plant aimed to offset the lost generating capacity after Bulgaria bowed to EU pressure for an early closure of two pairs of 440-MW units at Bulgaria's sole nuclear power station in Kozloduy at end-2002 and end-2006. But Bulgaria’s participation in the Burgas-Alexandroupolis project is on the rocks after it sparked vehement opposition from greens and the local community. While expected to fetch around USD 35 million in transmission fees each year, the scheme threatens spills in the Black Sea that could cause an environmental disaster, according to critics.
Source: Dnevnik (23.09.2009)

RWE Mulls Withdrawal from Belene Nuclear Station Germany’s RWE – strategic partner of Bulgaria’s National Electric Company in Belene nuclear plant construction – is considering withdrawal from the project. According to RWE’s Chief Executive Officer Juergen Grossmann, the reason behind the decision would be the continuous rise of building related expenses. This, though, was not the first report of RWE’s possible back-stepping. A month ago Heffa Schucking - leader of the German environmentalist organization Urgewald - said at a Sofia-held press conference that mass protests in Germany against RWE’s involvement in Belene were beginning to yield results, making the company to rethink partnership with NEC. Schucking stated that the final decision about RWE’s withdrawal will be made at the end of the month when a general meeting of RWE’s shareholders is to take place.
Source: Standart (26.09.2009)

Gazprom Wants Damages from Bulgaria Gazprom is demanding damages from all European buyers of blue fuel, including Bulgaria, the Russian edition Kommersant reported. The Russian energy giant stated it would apply the "take-or-pay" clause over lower gas consumption in Europe. Basically, this clause regulates that in case a nation does not fully consume the negotiated yearly volume, it has to pay Gazprom damages. Last week Bulgargaz CEO Dimitar Gogov announced Bulgargaz was buying less than agreed and had began negotiations to circumvent payment of damages.
Source: Standart (29.09.2009)

Bulgaria Refuses to Pay EUR 200 M to Russia "The Bulgarian government has refused to pay a large amount to Atomstroyexport," Bulgaria's Minister of Economy, Energy and Tourism Traycho Traykov told Nova Television Sunday night. Shortly before the visit of Russia's Energy Minister Sergey Shmatko and Rosatom Director Sergey Kirienko, Atomstroyexport insisted on signing a bridge deal on producing the next set of components for Belene Nuclear Power Plant for the price of 100-200 million euros, but met with stern refusal in the face of the Bulgarian government. Bulgaria's Prime Minister Boyko Borissov yesterday announced that Belene's strategic investor - the German energy giant RWE - had not given up participation in the project and that the talks would continue. "The future of Belene NPP will become clear by the end of October," Borissov added.
Source: Standart (29.09.2009)

Bulgarian companies should participate in the transportation of oil from Novorossiysk to Burgas, Prime Minister Boyko Borisov proposed. The implementation of this idea, announced by the Minister of Economy, Energy and Tourism Traycho Traykov, would increase Bulgaria’s potential benefits from the construction of the Burgas – Alexandroupolis pipeline. This is one of the three Russian energy projects, ‘frozen’ by the GERB-government of Borisov. Minister Traykov added that Bulgaria is not satisfied with the current transit and royalty taxes for transportation through the territory of the country under the current contract. They are USD 1 per ton at annual capacity of 35 mln tons.
Source: mediapool.bg (29.09.2009)

Think towards Solar Energy, Not Nuclear Dr Dominique Raynaud is an expert at climatic change issues. Along with other researchers from the Intergovernmental Panel on Climate Change and Al Gore he received the Nobel Prize for Peace in 2007. Al Gore's film, An Inconvenient Truth is partially based namely on the research of Raynaud. Dr. Raynaud was on a visit to Sofia where he delivered a lecture on the preparation of the conference on climate change in Copenhagen. - Mr. Raynaud, how real is the threat of global warming? - Generally the stakes are rather high. Take Africa for example. This continent is already in a very dangerous situation. The sea level will rise by 50 or 80 cm or even more by the end of the century. This means there will be a lot of problems in many coastal countries. In Bangladesh, for instance, thousands of people will have to be evacuated. Millions of people will have to immigrate, increase of conflicts is very possible etc? - You believe the future of the Earth is to an extent in the hands of the people. Do you think that they, though, can really be motivated to change the status quo? - People should be educated, things should be explained to them. This issue should not be abandoned; people should be persuaded without being compelled. We are talking of a threat, of a possibility, not about something that will for sure happen. I also hope we are wrong. But even if we are right, this will happen for good because we will have to change our lifestyle. - What do you think of nuclear energy? A lot of discussions are currently being held in Bulgaria on the necessity of constructing a second NPP? - Nuclear energy is not the only solution. I am not familiar enough with the situation in Bulgaria but generally I believe more efforts should be focused on renewable energy sources. In Bulgaria you have a lot of sunshine, it should be used. It is not expensive, simply solar cells have to be installed. I think soon and earnestly Bulgaria has to consider the solar energy issue because here you have very favourable conditions. I do not say it is stupid to think of nuclear energy. If it is well controlled it can help slow down global warming. Bulgaria, though, should consider using solar energy.
Source: Standart (29.09.2009)

Bulgaria Belene Nuclear Plant to Bring EUR 80 B over 60 years If built, the Bulgarian Belene nuclear power plant will bring incomes of EUR 80 bln in a period of 60 years. This has been announced Tuesday by Bogomil Manchev, one of the consultants on the power plant project. The discussion on Belene issues was organized by the Parliament, and the Energy Minister, Traicho Traikov, and National Energy Company Director, Georgi Mikov, also attended it. “The Belene NPP project is economically sound. The incomes in a 60-years period will amount EUR 80 bln, while the expenditures will not exceed EUR 200 mln”, Manchev said. Until 2020 the powers of the heat powered plants in Varna, Bobov Dol, Maritsa-Iztok 3, and Brikel will be stopped. However, the amount of electricity produced by wind power will increase by then. On the other hand, the economist from “Open Society”, Georgi Angelov, said that talking about incomes in 60 years is arguable. “The market is unstable. Do you know whether Turkey will need electricity from Belene NPP in 60 years”, he asked the NEK representative.
Source: 24 chasa (30.09.2009)

Poseidon, a joint venture of Greek Depa and Italian Edison, will control 50% in the new 170-km gas connection between Bulgaria and Greece, said the Bulgarian Energy Holding (BEH). The holding company, which lumps together Bulgaria's top-notch energy assets, will team up with Poisedon for the gas link construction. The project will swallow around EUR 120 million under rough estimates. The parties involved inked a memorandum of understanding (MoU) in May. Through an extension of the existing gas pipeline running through Turkey, Greece and Italy, the link will diversify Russian deliveries from the Caspian region. The new gas route linking Stara Zagora, Dimitrovgrad and Komotini will reduce dependence on Russian gas supplies by 20-30%, experts projected. The document was inked despite the freeze on energy projects imposed by the incumbent Cabinet of Prime Minister Boyko Borisov on the grounds it would bolster the country's energy security.
Source: Dnevnik (01.10.2009)

Previous Bulgarian deal with Gazprom filed with the Prosecutor’s Office The deal between Bulgargaz and Gazprom will be filed with the Prosecutor’s Office over alleged neglect of duty on behalf of Rumen Ovcharov, then Minister of Economy and Energy, Maria Cappone said. According to calculations of her experts, Bulgaria had been losing and would keep on losing BGN 500 million a year or a total of BGN 2 billion for the period 2007-2010. Cappone explained this is hurting the Bulgarian businesses. Back in 2006, Bulgaria signed a new gas supply agreement with Gazprom 4 years before expiry date of the 1997 contract. The base price was raised from USD 82.5 up to USD 91. A special clause was attached to the paper, envisaging that gas costs would increase on each 6 months.
Source: Standart (01.10.2009)

The pre-tax profit of Bulgarian Energy Holding (BEH) companies surge over BGN 80 million to BGN 309 million in August compared to June 2009, the holding's report for the first eight months of 2009 show. The profit rise in August compared to July was over BGN 53 million. Despite all efforts to curtail expenses, they gained 10% in August compared to July.
Source: Pari (02.10.2009)

Heat Supply-Sofia will have to return BGN 240 million to the Bulgarian Energy Holding, if the company becomes once again municipal property, said the Minister of Economy Traicho Traikov yesterday. This sum was given by the previous government to BEH for development of the heating sector. On its part BEH bought the debts of Heat Supply Sofia to Bulgargaz. Thus BEH had to acquire a stake in the heating utility, but the former Minister of Economy did not signed the documents.
Source: Monitor (06.10.2009)

At Least Two Bidders for Belene NPP "Two foreign investors have been said to show interest in bidding for acquiring 30% of Belene NPP, Bulgaria's to-be second NPP, before the November deadline," reported Bulgaria's Finance Minister, Simeon Djankov, in an interview for Dow Jones Newswires, published by the Wall Street Journal that Djankov gave in Istanbul where he went for the upcoming annual meeting of the World Bank and the International Monetary Fund. Bulgaria's Finance Minister did not revealed the names of the investors. 49% of the future nuclear plant is owned by the German energy company RWE. The new Bulgarian government has recently decided to sell 30% of the future plant in order to find funding for its construction. The state share was supposed to be 51% but the government believes it would be very difficult to finance the project on the state budget. In lines with Djankov's statement, Bulgaria's Minister of Economy and Energy, Traicho Traykov said in Parliament that the possible bidders may be more than two but he did not give names either. Minister Traykov took part in a round table discussion called Energy Diversification and Energy Security. "Bulgaria never asked Russia for a loan," Traykov commented the statement by Russia's Deputy PM and finance minister Alexei Kudrin that Russia will consider lending Bulgaria EUR 3.8 billion to construct Belene NPP. "Bulgaria's energy is like English football: too much running and low efficiency," Traykov said in the course of the discussion. Bulgaria's current energy efficiency levels are the lowest in the EU, which is why this country spends so much on heating. Energy efficiency would therefore be embedded as a priority in Bulgaria's energy strategy, which will be drafted by the end of the year. Traykov, however, did not comment if this strategy would include large-scale projects such as Belene NPP and the South Stream and Bourgas-Alexandroupolis pipeline projects. The European Commission must by the end of the month give its approval to the measures related to Bulgaria's gas links to Greece, Turkey and Romania.
Source: Standart (06.10.2009)

The heating utility firms in the cities of Sofia, Vratsa, Pleven and Burgas may face gas cut if they do not pay their debts to Bulgargaz. I will not let the gas supply as we cannot pay in advance the gas to the Russians, said Dimitar Gogov, head of the state-owned gas monopoly. We sent letters to the heating utilities months ago alerting them about the possible gas stoppage. The total debt is over BGN 175 mln as BGN 30 mln are instantly exigible. Heat Supply-Burgas, Heat Supply-Pleven and Heat Supply-Vratsa has signed prolongations of their debts. Heat Supply-Sofia has not reached such a deal due to the change of ownership. A debt of BGN 120 mln is being extended and if the Ministry of Economy, being the owner, approves such a scheme, Sofia would have heating in the winter.
Source: 24 chasa (07.10.2009)

Revenues from State-run Companies Fill Bulgaria's Budget Gap Six state-run companies will have to contribute fifty percent of their profit for last year to the state budget as dividends. This will probably be decided during today's sitting of the Council of Ministers. State-owned companies Sofia Airport, Kintex, Bulgarian Energy Holding and Bulgarian Posts have to deposit to the state budget half of their profit for 2008 by October 30, while Bulgartabac Holding and national Information Service should make their contributions until December 15. The revenues to the Fisc for September amounted to 1.959 billion levs, up by 130 million levs from August and the gap in the budget shrunk to only 62 million levs end-September, experts from the Finance Ministry said. As there are no indications that the economy has started emerging from the global recession, the only explanation of these positive results is that the anti-crisis measures of Deputy PM Simeon Djankov have started working.
Source: Standart (14.10.2009)

Bulgaria under Russian Pressure over Joint Energy Projects "Bulgaria has been ousted South Stream project" according to an Euractive headline. The website, citing prominent Russian media, reports that Russia has obtained all the permits necessaryÿto build its 'South Stream' gas pipeline through Turkish territorial waters, discarding Bulgaria as one of the project's transit countries. Taner Yildiz, Turkey's economy minister, has granted all the necessary authorisations for the South Stream project to run through Turkish territory, the Russian daily Kommersant writes.ÿ The event, which was hosted by Italian Economy Minister Claudio Scajola in Milan on Monday (19 October), eliminated Bulgaria as a transit country for the Gazprom-favoured pipeline, the daily writes. Sofia and Gazprom denied the allegations. "Bulgaria has not been informed about any intention of Russia to exclude this country from "South Stream" gas pipeline project," stated officials from the Bulgarian Energy Holding (BEH). The press center of Gazprom also denied the information, BEH says. Today experts from Gazprom got in touch with BEH representatives to specify the schedule of the working meetings in next week. According to "Komerssant" daily, Bulgaria has been excluded from "Bourgas - Alexandrouplis" gas pipeline as well. "Bourgas - Alexandroupolis" project should not be considered as closed for Bulgaria, because the information from Milan was aimed to be noticed by the Bulgarian officials, concludes Kommersant. By cutting out Bulgaria from the two gas projects - "South Stream" and "Bourgas-Alexandroupolis" Russia's PM Vladimir Putin gives an apparent answer to the new Bulgarian PM Boyko Borissov. Recently Borissov told his Russian counterpart that his cabinet needs time to consider Bulgaria's participation in the big energy projects in which Russia is involved, "Komerssant" writes
Source: Standart (21.10.2009)

Russia repeated its request to use Bulgaria's gas transportation system Russia has made a second attempt to gain control over Bulgaria's system for transportation of natural gas. Moscow has submitted information concerning the expansion of the South Stream project. This emerged after yesterday's meeting of Economy and Energy Minister Traycho Traykov and his Russian counterpart, Sergei Shmatko, in Moscow. The Russian party presented a detailed analysis of all possible options for the realization of South Stream project, including the one that regards the utilization of the now existing natural gas transit system, Mr. Shmatko said, as quoted by Russian news agencies. According to a publication of Gazeta.ru, such a move will increase the capacity of the pipeline. Exactly a year ago, the Bulgarian government turned down such a proposal from Moscow and said that South Stream should use a new infrastructure. Bulgarian experts have voiced concerns that if the transit system is full of natural gas from South Stream, Bulgaria will not be able to use alternative supplies through Turkey. The proposal of Moscow has surprised the experts in Sofia, who received it during Minister Traykov's visit to Russia and they are still to analyze it. Italian companies have shown interest in Bulgaria's NPP Belene project. This emerged after the meeting of Economy and Energy Minister Traycho Traykov with his Russian counterpart, Sergei Shmatko, in Moscow yesterday. Minister Traykov did not name the Italian companies, but only said that the interest was demonstrated during the visit of Italian PM Silvio Berlusconi to Sofia a week ago. Italy's Enel participated in the tender for the realization of NPP Belene project some years ago. Sofia's government said they would put under the hammer part of their 51-percent share in the nuclear plant. According to information of the national radio, Traykov and Shmatko did not discuss the option of Russian financing of the construction of NPP Belene. During his talk with Mr. Shmatko, Minister Traykov confirmed Bulgaria's commitment to continue working on all three projects - Belene, South Stream and Bourgas-Alexandroupolis. "Work on the realization of South Stream shall be accelerated," the two ministers said after their meeting. During the talks in Moscow, Minister Traykov was informed that South Stream would not circumvent Bulgaria, even though some segments of the pipeline might pass through Turkish territorial waters. Experts are now analyzing the technical and the economic parameters of Bourgas-Alexandroupolis, as well as the impact of the project on the environment, Mr. Traykov added.
Source: Standart (23.10.2009)

Putin: South Stream May Be Ready before North Stream Russia’s Prime Minister, Vladimir Putin, has told his Italian counterpart, Silvio Berlusconi, that the South Stream gas transit pipeline might be completed before the similar project in the Baltic. According to the existing plans, the first lot of the North Stream pipeline connecting Russia to Germany through the Baltic Sea is scheduled to be opened in 2011. At the same time, the South Stream, which also passes is not supposed to be ready until 2013. Putin and Berlusconi met in Russia to discuss the realization of South Stream in which the Italian energy company Eni is a major participant, together with the Russian Gazprom. Putin and Berlusconi also had a video conference with Turkey’s Prime Minister, Recep Tayyip Erdogan, thus repeating their three-way meeting in Turkey in August 2009. Earlier this week, Turkey allowed Russia to carry out explorations in its exclusive economic zone in the Black Sea for the proposed future route of the South Stream pipe. Reports in the Russian media said that thanks to that Russia will be able to build South Stream circumventing Bulgaria. During the video conference, the three Prime Ministers also confirmed their intention to go ahead with the Samsun-Ceyhan oil pipeline project.
Source: Darik Radio (23.10.2009)

Russia Cannot Take Hold of Bulgaria's Gas Transit System Valentin Kanev, Director of the Balkan and Black Sea Oil&Gas Association Last week, Bulgaria Economy and Energy Minister Traycho Traykov paid a visit to Moscow and discussed with his Russian colleagues important joint energy projects. The second round of the negotiations is scheduled this week in Sofia. The Standart asked Mr. Valentin Kanev, Chairman of the Bulgarian and Black Sea Oil&Gas Association, to comment on the latest developments of the Bulgarian-Russian natural gas projects. Mr. Kanev, how would you interpret the statements of Russia that the technical parameters of the South Stream will be altered towards expansion of its capacity? - Initially, the throughput capacity of South Stream was estimated at 31 billion cubic meters of natural gas a year. Later the information was released that the pipeline's capacity would be increased to 63 million cubic meters of gas a year. During their meeting with Italian PM Silvio Berlusconi last week, Russia's President Dmitry Medvedev and PM Vladimir Putin said that the pipeline's capacity would increase twofold, but did not mention particular figures. So it did not become clear whether it will increase twice from 31 or 63 billion cubic meters. Still, the throughput capacity of South Stream will be quite substantial and Moscow will probably propose the transit of natural gas through Bulgaria to Turkey, Greece and Macedonia (about 17 billion cubic meters a year) to be replaced with gas from South Stream. The rest of the supplies will be transported to Europe, Italy, Hungary, etc. So, Russia wants to replace the quantities of Russian gas transported through Ukraine to Europe with natural gas from South Stream. The additional 55 billion cubic metres that will be transported via "Nord Stream" pipeline will almost put Ukraine out of the way of Russian gas. But it is not clear if minister Traycho Traykov discussed the issue during his visit to Moscow. - Was Bulgaria pressured regarding the property of the transit pipelines of "South Stream"? - "Gazprom" insists on ownership on the transit gas pipelines. I suppose Bulgaria has answered that it cannot concede the existing pipe network. In the new infrastructure of "South Stream" the property of the pipelines might be shared, but this has already been discussed. The demand of "Gazprom" concerning the transit gas pipes contradicts EU legislation. The third energy package is the final decision of the European Parliament and the European Commission on energy policy. According to the directive the companies, which extract natural gas can't have control over the transit pipes. Because of that if "South Stream" project is implemented the control over the gas transport system should be exercised by Bulgaria, by its national operator. This is a very important benchmark in EU energy policy that should be taken into consideration.
Source: Standart (26.10.2009)

Russian Experts Arrive for New Gas Contract The clauses of a new Russian gas supply contract will be negotiated this week in Sofia. Bulgaria's Minister of Economy and Energy Traycho Traykov has included the discussion of this issue in the forthcoming Bulgarian-Russian negotiations on expert level. Working groups will meet this week in Sofia to re-consider their views on the South Stream project. They will work on an agreement between the gas pipeline shareholders as well as on the requirements of the bid for the project's preliminary study. The new parameters of the pipeline, connected with its bigger capacity, of which the Bulgarian Minister of Energy has been informed, will be discussed at the meeting.
Source: Standart (26.10.2009)

Brussels Offers Extra EUR 300 M for "Kozloduy" NPP The European Commission made a proposal that Bulgaria be compensated by additional 300 million euro for the pre-term decommissioning of units III and IV of "Kozloduy" NPP, AFP informed. Till the end of 2008 the EC allotted 550 million euro compensation for putting out of action the two nuclear reactors. The additional funding would be for the period 2010-2013, if the European Council and the European Parliament approve it.
Source: Standart (28.10.2009)

WE is pulling out of the construction of Belene nuclear power plant (NPP). Bulgarian Energy Holding has received an official letter from the German company, deputy minister of economy and energy Maya Hristova said. RWE was named strategic investor in the project with a 49-percent stake. The company cites the global financial and economic crisis and the failed financial structuring of the project as reasons for its withdrawal. The lack of a final agreement with contractor Atomstroyexport is another motive for the decision. However, RWE is willing to participate in future joint projects with Bulgaria. RWE's withdrawal will necessitate complete restructuring of the project, Bulgarian Energy Holding CEO Galina Tosheva said. A new consultant will have to be chosen, the tender will be announced in about two months. A few more months will elapse before the right candidate is chosen. The consultant will then need a year or so to prepare criteria for selection of an investor, Tosheva pointed out. That means that the project will be delayed by at least a year and a half.
Source: Pari (29.10.2009)

German energy utility RWE, the private investor in Bulgaria’s Belene nuclear power project, has told the government it is withdrawing from the joint venture with state-run grid operator NEK. The announcement was made Wednesday by Galya Tosheva, executive director of the Bulgarian Energy Holding (BEH), the mega structure for the nation’s top-notch energy assets. Deputy energy minister Maya Hristova explained that the Bulgarian government will stick to the 2,000 MW project, which is meant to offset the loss in generating capacity at the Kozloduy nuclear power facility following the premature closure of two pairs of 440 MW reactors. The government is now scratching its head on how to bring in new investors. The decision of the German concern, which held 49% in the joint venture that was formed to develop the Belene nuke plant, came after a string of signals indicating it plans to call it quits. The main reason behind the decision to pull out of the project was that it had not secured funding yet, Stephanie Schunck, spokeswoman for the company's power generation unit RWE Power, told Dnevnik. Financing for the construction of the project’s two 1,000-MW reactors should have been secured by the end of October but funding options were limited back at the start of the year. NEK has reiterated that the economic downturn will dry up funding for the scheme, whose cost had soared to EUR 6 billion, according to AtomStroyExport, the Russian company appointed to build the plant. But the government continues talks with international banks amidst public protests against green groups that contested the reliability of the Russian technology chosen for the project. Bulgarian prime minister Boyko Borissov called on his predecessor Sergei Stanishev to come out and spill the beans about RWE to prove the project’s feasibility. “They [RWE] don’t want to buy a cat in a bag,” Borissov noted. The economic ministry will restructure Belene before picking a consultant to develop a procedure to attract new investors, Hristova said. Preparation and selection of an advisor will take around five months and pen could be put to paper with the new investor in the next 12 or 18 months. Hristova confirmed reports that the state is pondering lowering its 51% stake in the joint venture. Finance minister Simeon Djankov has forecast it could drop to 20-30%. According to Hristova, the project has sparked interest with two or three investors. So far, only Russia has formally expressed interest, saying it could fully finance the project and acquire 100% of its capital. The Belene project will mark the entry of Russian nuclear technology in EU territory.
Source: Dnevnik (29.10.2009)

Former Bulgaria's PM Aware of Financing Problems with Belene NPP Bulgaria's former Prime Minister, Sergey Stanishev was warned a couple of months ago that the German RWE would most probably withdraw from Belene construction project. As early as March Stanishev was reportedly informed the German company would not commit in providing the advance payment of 320 million euro for the purchase of nuclear units, emerged also from the words of RWE Energy Policy Department head, Jorg Kerlen for Deutsche Welle radio. "We told the previous Government that obviously there was a problem with the funding of the project. The money was not provided in the envisaged time and a decision could not be found," Kerlen said yesterday.
Source: Standart (30.10.2009)

Atomstroyexport Ready to Proceed with Belene NPP Construction "We have no intention to stop the work on the construction ground of Belene," sources from Atomstroyexport stated in their official stand after the news broke that the German RWE withdraws from the project. The stand reads that the Russian company will continue carrying out their commitments on the contract and keep deadlines and will not reconsider the agreements. Meanwhile the environment protection organization Greenpeace stated they welcomed the decision of RWE to give up its participation in Belene as this move was a nail in the coffin of nuclear energy production which was expensive and very dangerous.
Source: Standart (30.10.2009)

Nabucco will be supplyed from Azerbaijan, Turkmenistan and northern Iraq The European project for supply of gas from the Middle East – Nabucco, will be filled with blue fuel from Azerbaijan, Turkmenistan and northern Iraq, said Joschka Fischer, former vice-chancellor of Germany and consultant on the project of RWE and OMV. According to him, a key year for the pipeline will be 2010, when its realization should begin. "Europe and Bulgaria in particular, should remember the gas crisis from the beginning of this year and to seek alternative sources of supply," said Fischer. So far, there are opportunities to bring gas from Iran, but there is no arrangement for the time being. The Nabucco project complements the planned Russian gas pipeline - the South Stream, because Europe will need more gas in the future. European gas pipeline will cost EUR 8 billion. Currently we estimate no appreciation of the project, the expert added. Bulgaria will provide EUR 300 million of the necessary funds, said Economy Minister Traicho Traikov. In his words, every euro is valuable in a time of crisis, but we can always find money for important things, this is why they are important, the minister said. In 2010, Nabucco enters a decisive phase, which started with the Ankara Agreement signed between the governments involved in the project and companies. Yet each country is to ratify the treaty. Half of the project to transport gas will be owned by the participants and the remaining 50% will be offered to potential investors.
Source: Dnevnik (03.11.2009)

Bulgaria ready to allocate EUR 300 M for Nabucco Bulgaria is prepared to allocate EUR 300 M for the construction of the Nabucco gas pipeline. This is a share the country has to pay as a participant in the project. The calculations are based on the fact that Bulgaria’s “cut” is 16.6 percent given the condition that the pipeline is to be financed by the partakers who pay 30 percent each, whereas the remaining 70 percent will be paid by the designing company. This emerged after the meeting between Traicho Traikov, Bulgaria Minister of Economy, Energy and Tourism and Joschka Fischer - political consultant of energy giants OMV and RWE on the Nabucco pipeline and former foreign minister of Germany. According to Traikov, every spent euro is of importance in times in crisis; however, such a crucial project justifies heavy investments. He added that so far Bulgaria has not considered an option of selling its share in the project and becoming a transitory country. During the meeting the minister has confirmed Bulgaria’s commitments in the Nabucco project and said that an intergovernmental agreement is being drafted.
Source: Standart (03.11.2009)

BGN 300m for Belene NPP spent unlawfully BGN 300 million allocated for the setting up of the joint venture between National Electric Company (NEK) and RWE for the construction of Belene nuclear power plant (NPP) has been spent, though the plans for the company failed. This emerged from the report of the Public Financial Inspection Agency. The funds were earmarked by the state to raise Bulgarian Energy Holding's capital after which they had to be transferred to NEK. Minister of economy and energy Traycho Traykov said his predecessor Petar Dimitrov should be held responsible.
Source: Pari (09.11.2009)

Bulgarian Energy Holding Contributes EUR 1.3 mln to Nabucco Company The Board of Directors of the Bulgarian Energy Holding decided Friday to deposit EUR 1,345 mln for increasing the capital of the Nabucco Gas Pipeline International company. The sum reflects the proportional share of the Bulgarian participant in the company, BEH’s subsidiary Bulgargaz. Each of the six companies participating in the project - OMV (Austria), MOL (Hungary), Transgaz (Romania), Bulgargaz (Bulgaria), BOTAS (Turkey), and RWE (Germany) – has an equal share. In June 2009, the CEO of Nabucco Gas Pipeline International requested that the partners made two consecutive deposits for increasing the company’s capital. As a result, BEH made its first deposit amounting to EUR 1,972 mln in August 2009, when the capital of the Nabucco company reached EUR 773.8 mln. It will be increased by another EUR 8 mln after the second deposit of each of the partners. The Nabucco gas transit pipeline is supposed to bring natural gas supplies from the Caspian region and the Middle East to the EU. It will have a total length of 3 300 km, and is expected to cost about EUR 8 bln.
Source: Dnevnik (09.11.2009)

The Bulgarian government will float between 10 and 15% of some state-run companies for trade on the local stock exchange, energy minister Traycho Traykov said. The subsidiaries headed for the Bulgarian Stock Exchange (BSE) include national grid operator NEK, gas company Bulgargaz, transmission system unit Bulgartransgaz, telecoms operator Bulgartel, etc. Minister Traykov added that in order to implement the idea, the requirements under EU’s third energy liberalisation package for independence of the operators. Thus, Electricity System Operator and Bulgartransgaz should be separated from NEK and BEH respectively.
Source: Monitor (11.11.2009)

By the middle of 2010 some of the state energy companies included in Bulgarian Energy Holding (BEH) will be listed on the Bulgarian Stock Exchange (BSE), deputy minister of economy, energy and tourism Maya Hristova said. On Tuesday the ministry rendered an account of the first 100 days in office and presented its priorities. The state is considering listing some 10 or 15% of Bulgargaz, Bulgartel and National Electric Company. The future of Kozloduy nuclear power plant, Maritsa Iztok 2 thermal power plant and Maritsa Iztok Mines, which are also part of BEH, has not been discussed. Bulgartransgaz and Electricity System Operator will not be quoted, as they will be taken out of the holding due to EU requirements. The question still under discussion is whether to list the companies individually or as a part of the holding.
Source: Pari (11.11.2009)

Bulgaria’s Economy Minister Calls for Liquidation of Kremikovtsi “The best possible option for Kremikovtsi is a procedure for the plant’s liquidation,” Bulgaria’s Economy and Energy Minister Traycho Traykov said during his report on the first a hundred days of the government. This is necessary because the plant has turned into a fake industrial structure, it has accumulated considerable debts to the state energy utility NEC (13 million levs as of August this year) and to the railway carrier BDZ. Mr. Traykov said further that the plan for the plant’s liquidation had been coordinated with the bondholders, but its implementation might take years.
Source: Standart (11.11.2009)

Traykov: The only real alternative to the Kremikovtzi is liquidation Liquidation of Kremikovtzi is the only real alternative for the plant, said Economy Minister Traycho Traykov only a day after the deadline for company's creditors to declare their position on the recovery plan. The largest private creditors rejected the possibility for recovery of the plant. The State has missed many golden chances to intervene in the fate of Kremikovtzi, said Traykov. "We were wondering why when ArcelorMittal had 30 experts in Kremikovtzi and wanted to buy the steelmaker last year, it did not happened", the minister said. Because of this, in the words of the minister, the plant has turned into "fake industrial entity", which dragged down many other companies. Since August only the metallurgical plant has accumulated another BGN 13 million debt to the National Electricity Company. BDZ transports for Kremikovtzi and expects to get money for it, but will also not receive it. Ministry of Interior guards the trains and also expects to receive money for it, but will not get such, the minister said. Because of this, the future of the plant is liquidation. "By the judiciary we will have to establish transparency, fairness and legality of the liquidation. This will be a process that will last a long time", said Minister Traykov.
Source: vesti.bg (11.11.2009)

Bulgaria's Minister of Economy, Energy and Tourism, Traicho Traikov, has removed the board of Directors of the Bulgarian Energy Holding (BEH), a Ministry press release announced. Traikov released the Directors after terminating their contracts by mutual consent, with no pay out offered. Boris Pekov - Chairman of Board of Directors, Tencho Popov - Deputy Chairman of Board of Directors and members of the board Galina Tosheva, Dimitar Gogov and Dimitar Dimitrov were all removed. The new Board of 3 Directors is headed by Maya Hristova - Deputy Minister of Economy, Energy and Tourism. The two other Board members are Galina Tosheva, who was re-elected as Executive Director and Dobrin Stefkin -civil servant in the State Commission on Information Security. Traikov concluded that the changes were intended to improve operational performance in the management of the Holding.
Source: Darik Radio (16.11.2009)

The European Union and Russia agreed to an "early warning" mechanism to shield Europe from potential energy supply cuts and protect consumers in the event of a repeat of last year's Russia-Ukraine gas dispute. The agreement requires both sides to notify the other of any likely disruption to supplies of oil, natural gas or electricity and to work together to resolve the problem. Third parties would also be allowed to participate, the European Commission said. "An energy crisis like the one the EU suffered in January is harmful for supply, transit and consuming countries alike," EU Energy Commissioner Andris Piebalgs said.
Source: Reuters (16.11.2009)

Foreign investors interested in BEH Foreign investors are already showing interest in the conditions and the time of listing parts of the Bulgarian Energy Holding on the Stock Exchange, said BSE head – Bistra Ilkova. Interest in the listing of 10-15 percent of the state-run energy companies comes from Germany. Ilkova said that an experts work group would cooperate for the procedure. The experts team was assembled in order to assist the institutions with the initiatives related to the listing on the Stock Exchange – potential allocation of part of the money to the Silver Fund, privatization, legislative changes. According to the information that BSE may change its regulation concerning the minimal requirements for the listed entities, which would lead to the delisting of over 200 companies in 2 months, Ilkova commented that The Exchange has rules and they are kept.
Source: 24 chasa (18.11.2009)

Bulgaria's Gas Connection with Neighbouring Countries under Question A problem has occurred with the facilities meant to interconnect the natural gas transmission system of Bulgaria with the systems of its neighbors, Greece and Romania, following a decision of Brussels to review the European plan for economic restoration, under which the project is to be financed. The problem is not with the Bulgarian party, which has submitted all necessary documents and is ready to act further - it became clear from a press conference given in Brussels by Bulgaria's Foreign Minister Rumyana Zheleva and Boyko Kotsev, permanent representative of Bulgaria in the EU. In March this year, the two joint projects were included in the plan for economic restoration. As a result, the interconnection with Greece was financed with 45 million euro and that with Romania received 10 million euro in EU funds. Normally, the EU member states may rely on as much as 1.75 billion euro financial aid for the realization of such energy project, but now this sum has been reconsidered. A decision has been taken to assess the level of readiness of the participants in the projects, Mr. Kotsev said. We will give this issue a careful consideration, as we cannot afford losing these funds, Mrs. Zheleva said on the sidelines of a meeting of the EU foreign ministers in Brussels. Bulgaria and Slovakia are fully dependable on supplies of natural gas from Russia and we are doing everything possible to prevent another gas crisis like that in January, Mrs. Zheleva said. "The meeting of the Bulgarian-Russian committee in December is expected to shed light on the development of the joint energy projects of Sofia and Moscow," she added.
Source: Standart (18.11.2009)

Minister Traykov: the state won't pay Kremikovtsi's debts "I cannot allow the debts of Kremikovtsi steelworks to be paid from the state budget," stated yesterday Bulgaria's minister of energy and economy Traycho Traykov at a discussion on the future of the bankrupt metallurgical plant. "If big state-run enterprises become Kremikovtsi's owner, they will have to pay its debts. In a situation of crisis, the National Electric Company (NEC) and Bulgargaz will have to pay off its debts to the ministry of finance. As a person responsible for the financial status of NEC and Bulgargaz, I cannot render them my support for such a decision," stated minister Traykov. Thus minister Traykov said “no” the a rescue plan which envisaged that Kremikovtsi's creditors become its owners. "Now, the discussion should be focused on what should be built in the place of Kremikovtsi," minister Traykov said further. In Traykov's opinion, the several thousand workers facing the risk of being left jobless in Kremikovtsi are the only reason that the Kremikovtsi issue is still discussed.
Source: Standart (19.11.2009)

Renewable energy developers to pay for grid upgrades Clean energy investors in Bulgaria will pay a one-off fee to fund power transmission grids, according to a proposal by the energy watchdog that could come in from next year. The idea of the State Energy and Water Regulatory Commission (SEWRC) could be incorporated into the new Renewable Energy Act being drafted by the economy ministry, which should be voted by parliament by December 5, 2010. The new fee will be tied to the size of the capacity plugged to the grid. It is estimated that hooking up 100 MW of new projects annually would absorb roughly EUR 20 million. “Grid development costs could be alternatively split between investors and operators but the calculation mechanism is yet to be discussed,” SEWRC member Plamen Denchev said. The proposal is aimed to assuage a funding gap for grid expansion as new capacities are lining up to get connected. State-run grid operator NEK has not made any investments in expansion in the past years, stalling grid-connection for wind and solar parks in northeastern Bulgaria. As of 2010, Bulgaria will introduce a new mechanism to set grid-connection prices to factor in expenses made by power distributors and utility company NEK. The current fee covers operators’ expenses to the connection point and developers are forced to build they own pipes and substations as operators refuse to hook up new projects. Denchev explained the new fee will be higher and will be combined with the new grid development fee to ensure higher feed-in tariffs. The proposed changes got a lukewarm response from the clean energy industry. “Even if the new fee is introduced, there will be no guarantee that investors won’t have to queue up for connection,” said Velizar Kiryakov, chairman of the Bulgarian renewable energy association. He proposed that operators should be required to pay for electricity even when the plants are idle to account for lost profits.
Source: Dnevnik (19.11.2009)

Bulgargaz to seek BGN 30 million from clients for unused gas Bulgargaz, Bulgaria's gas monopoly, will impose penalties of BGN 25 million-30 million on business clients that have used less natural gas than initially agreed in 2009, executive director Dimitar Gogov said at a discussion of gas prices regulation. The company has not resorted to such measures so far, but it is itself facing penalties by its suppliers of Russian gas for agreeing bigger volumes. There is a "take or pay" clause in the contracts of Overgas Inc, Wintershall and Gazexport with all European companies. Some energy groups such as German E.on, Italian Eni and Turkish Botas have already requested that the condition be removed, but Russian gas major Gazprom has snubbed their proposals. "We have not breached the clause and we hope to reach an agreement with suppliers, so that we owe nothing," Gogov said. But so far the Bulgarian company has struck such an agreement only with Wintershall. Because of the crisis and a slump in production, gas consumption in Bulgaria dived by 30% year-on-year in the first 10 months of 2009. According to Konstantin Stamenov, the chairman of the Bulgarian Federation of Industrial Energy Consumers (BFIEC), gas prices should be changed once a year amid the crisis until the market is liberalised. In Bulgaria prices are higher than on the exchanges in Germany, he said. Under the contracts with Gazprom prices change every three months.
Source: Dnevnik (25.11.2009)

Bulgaria Keeps Golden Share in NPP Belene “When constructed, NPP Belene should not be entirely private,” said Russian Ambassador to Bulgaria Yurii Isakov. To his worlds, there are no insurmountable obstacles before the implementation of the project, including financial difficulties. According to Mr. Isakov, the construction of the new power plant is important to Russia, but the project is also of strategic importance to Bulgaria, because Europe will soon introduce environmental quotas that Bulgaria’s thermal plants will not be able to meet. Mr. Isakov said that Sofia government would probably keep a 20-percent stake in NPP Belene.
Source: Standart (26.11.2009)

Bulgaria Saves a Billion with a New Unit in Kozloduy NPP "Bulgaria would save over a billion levs (1euro = 1.95 levs) if a new unit is built in Kozloduy NPP, instead of constructing a new nuke in Belene," Operation Department head in Kozloduy, Rasho Parvanov said. The reason is that as a result of having decommissioned four of its units, the plant now avails of enough capacity for servicing a new unit and the only thing which needs to be built is the nuclear unit itself. Yesterday Bulgaria's Minister of Energy, Economy and Tourism, Traycho Traykov reported that the probability for constructing a seventh unit in Kozloduy is very high. Asked whether it is possible to build both Belene NPP and the new unit in Kozloduy, Minister Traykov said it would be economically justified if there is a market for electricity. "Currently the region suffers power deficit but there are also a number of rival projects as well," Traykov said. He believes what would matter is which project would prove most cost-effective.
Source: Standart (27.11.2009)

The Board of Directors of Bulgarian Energy Holding (BEH) have announced a reshuffle of the top management of subsidiaries Bulgargaz and Maritsa Iztok 2. Two new members – Boris Todorov and Georgi Gegov - have been elected to the Board of Directors, along with Dimitar Gogov, who has been until now the CEO of Bulgargaz. The BEH board have also decided to make changes to the senior management at Maritsa Iztok 2, appointing Jivko Dinchev, Ilko Jeliazkov and Georgi Hristozov as new members. Hristozov was, until now, CEO at Maritsa Iztok (Maritsa East 2). Two serving members of the board of management of the thermal power plant, Evgeny Stoikov and Georgi Hadjiyski, were removed from their positions.
Source: Darik Radio (30.11.2009)

The crisis hit Bulgargaz Over 1 billion cubic meters less is the consumption of natural gas this year as to the previous. This is a decrease of about 30 percent, Bulgarian Energy Holding announced. In 2008 the country imported 3.341 billion cubic meters of gas. Reasons for the decline in consumption are three. First is the shut down of Kremikovtzi. While working at full capacity, the plant spent 30 thousand cubic meters of gas per hour (about 260 million cubic meters annually). The other reasons are the interruption of supplies from Ukraine in early January this year and the smaller quantities purchased by district heating utilities in February, March and November. Bulgargaz's earnings would be BGN 500 mln down as a result. At the same time the crisis is hardly reflecting on the consumption of electricity - the decrease is only about 6%.
Source: Standart (07.12.2009)

Bulgarian gas distributor Bulgargaz saw its sales volume fall by 43% on the year in the first 10 months of 2009, hit by the economic crisis, the closure of steel mill Kremikovtzi and reduced consumption by district heating firms. The clients of the monopoly bought just 1.9 billion cu m of gas, its parent, state-run Bulgarian Energy Holding (BEH), said in a press release. Despite the weak sales, Bulgargaz made a profit of BGN 3.2 million on the back of higher prices in October. Coal miner Maritsa East, which is also part of BEH along with a number of key state-owned power assets, slashed its loss by BGN 16.6 million compared with September to BGN 1.9 million at end-October, the group said. The National Electricity Company narrowed its loss by BGN 3.4 million to BGN 14 million. BEH ended the 10 months with a profit of BGN 367.3 million, earning BGN 36.3 million in October, which is an increase of 11%. Coal-fired power plant Maritsa East 2 was the most profitable asset of the group, achieving a BGN 94.3 million profit in January-October. Nuclear plant Kozloduy reported a decrease in earnings.
Source: Dnevnik (08.12.2009)

The Loss from the Pipeline Exceeds the Profit The transit fees and the environment protection are the two key points that will finally "unlock", or, on the contrary "lock" the realization of the Bourgas-Alexandroupolis pipeline project. Most probably this will be one of the major issues of discussion at the forthcoming sitting of the inter-governmental Bulgarian-Russian Commission in Sofia, which is to be held at the end of this week. The statement belongs to Russia's Minister of Energy Sergey Ivanovich Shmatko and was made several years ago. He informed the MPs from the Russian Duma that problems were to be expected in connection with the implementation of the Bourgas-Alexandroupolis project. Bulgaria's Prime Minister Boyko Borissov posed the question on Sunday: at the celebrations, dedicated to the Day of Bourgas, he announced his intention to make public the contract on the oil pipeline so that the Bulgarians would know there was no clause in the document allowing any of the parties to withdraw. This is the argument with which Borissov will ask for a re-negotiation of the conditions at the Sofia sitting of the commission on December 10 and December 11. Only after the alternation of the project in a way that would guarantee serious profits for Bulgaria, the construction of the pipeline will have chances to start. On the other hand, the contract should guarantee that Bulgaria will keep one of the country's greatest riches: its beautiful nature. The construction of the pipeline hides serious risks for Bulgaria's environment.
Source: Standart (08.12.2009)

Bulgargaz: Natural gas to hike by 17% in first Q3 of 2010 Bulgargaz proposed the State Energy and Water Regulatory Commission (SEWRC) to approve price of the natural gas for the first Q3 of 2010 at the amount of BGN 437.80 per hm3 without VAT. The hike by BGN 63.67 per hm compared to the present price is a result of the higher over the last months prices of the alternatives of the natural gas fuels at the international markets, the Bulgargaz announced. In compliance with the requirements included in the Natural Gas Act Regulation, Bulgargaz daughter company of Bulgarian Energy Holding issues every three months a proposal, which summons to the SEWRC, on approving selling price of the natural gas.
Source: Monitor (10.12.2009)

Financial Crisis Drains South Stream Some Russian experts have voiced serious concerns regarding the implementation of Gazprom's largest energy projects in Europe – South Stream and North Stream pipelines. South Stream, which is planned to pass through Bulgaria, will have a throughput capacity of 63 cubic meters of natural gas per year, and North Stream's throughput capacity will be 55 million cubic meters of natural gas a year. Russian sources estimate South Stream at 25 billion euro. However, the global financial crisis has caused the consumption of natural gas to shrink and the prognosis for the next five years predicts a difference of 200 billion cubic meters between the global supply and demand of natural gas. This makes some Russian experts think that Gazprom is already experiencing economic difficulties. Given the changeable financial situation in the world, hardly anyone could forecast the economic efficiency of the two pipeline projects. For example, the Russian Institute on Globalization and the Human Condition has criticized Gazprom's South and North Stream projects as economically ineffective. According to Mr. Vasily Koltashov, head of the economic studies center with the institute, Gazprom will postpone the construction of the pipelines, because 2010 is expected to be a very difficult year for the company. It is obvious that the suppliers and producers have been the hardest hit by the global economic meltdown. Being a producer, Gazprom has not yet experienced the worst effects of the crisis and has not given up on its large scale projects, but in 2010-2011 the company will probably announce that the implementation of these projects has been postponed. The falling demand for natural gas on the global markets is another prerequisite for such a decision and it is also the main cause of Gazprom's problem. Is "South Stream' project advantageous to Bulgaria? Mr. Koltashov commented the words of Gazprom's official representative Sergey Kupriyanov that Bulgaria should not bargain on 'South Stream'. "Gazprom's objective is simple - to maximize its profit and to spend as less as possible on transit. In this sense, of course, Russia is interested the agreement to contain the most favourable clauses to 'Gazprom', while transiting countries also would like the transit to be advantageous to them." Under these circumstances are "South Stream' and 'North Stream' gas pipeline projects effective? At least the dynamics of global economy and the quickly changing situations compel a careful assessment of the perspectives, especially today, when this question will be determined at the sittings of the Bulgarian-Russian commission in Sofia.
Source: Standart (10.12.2009)

Revelation For Musty Problems with Russia A time has come for clarification in the Russian-Bulgarian relations. All things will be put to their places at the sitting of the Russian-Bulgarian intergovernmental commission which will take place today and tomorrow in Sofia. The discussions will determine the future of not only a couple of projects but also most probably the relations between the two states in the next few years. The key topics will be of course the three joint energy projects - Belene NPP, South Stream and Bourgas-Alexandroupolis. Last week Russia's Minister of Energy Production, Sergei Shmatko while conversing with Russian MPs hinted that the big problems would most probably arise in lines with the petrol pipe-line project Bourgas-Alexandroupolis. As for South Stream, he assured them that things were going smoothly and the project needed only intensified negotiations on corporate level. Referring to Belene NPP, Shmatko said that Russia could perceive potentials for development despite RWE's withdrawal from the project. For sure, the themes South Stream and Belene NPP would not be just mentioned at the talks in Sofia, especially when the Russian delegation is led by Shmatko himself. Obviously the Russians got tired of insisting before the new Bulgarian Government on more clarity whether the joint projects will be continued or not. This time the Russians come to Bulgaria to get concrete answers. Apart from the hot topics of energy production, the two-day talks will have to see to solving other issues. Some of them are the schemes for pension paying of Russians living in Bulgaria and of the veterans from the World War II. It is expected that the decades-long dispute over Bulgaria's licence to produce Kalashnikov automatic guns will be solved. The sittings on Thursday and Friday are expected to bear not only trouble but cooperation as well. Experts from Moscow are expected to present the Russian achievements in the spheres of IT and nanotechnologies. Another stale problem which might be solved at the discussion is the facilitation of visa issuing for Russians traveling to Bulgaria. It is still unclear to what extent Bulgaria could benefit from the solving of each of these problems. Both sides have their argumentation. The question is who will make a better use of them.
Source: Standart (10.12.2009)

Moscow Offers to Pay Bulgaria's Share in Bourgas-Alexandroupolis Russia is ready to pay Bulgaria's share in the Bourgas-Alexandroupolis oil pipeline, it transpired a day after Russian media informed that Moscow would offer a loan to Bulgaria to finance the country's share in Belene NPP project. Bulgaria has not paid yet 5 million euro to the International company Trans Balkan Pipeline (TBP) that will build Bourgas-Alexandroupolis pipeline. "We cannot pay our share in the project as currently we don't have enough money for the Bulgarian kids," Bulgaria PM Borissov recently commented. "To avoid any problems with the payment delay Russia is ready to provide a loan to Bulgaria, while Bulgaria will pay it off later," TBP president Alexander Tarakanov said. Mr. Tarakanov is in Bulgaria for the negotiations of the intergovernmental commission of Bulgaria and Russia. The negotiations are held in Sofia December 10-11. As to this moment, the cost of Bourgas-Alexandroupolis project is estimated at about 1.5 billion euro as the investment will pay back in at least 12 years.
Source: Standart (11.12.2009)

Belene NPP Agreement Extended by Three Months The agreement between the Bulgarian National Electrical Company and the Russian Atomstroyexport on the construction of Belene NPP was extended to March 31, 2010. The preliminary agreement signed in November 2006 expires in the middle of January. The final agreement with the Russian contractor, NEC and a chosen strategic investor had to be concluded after the financial sources and the financing schemes were defined. RWE withdrawal from the project, the financial difficulties of the Bulgarian state and the time necessary for a new strategic investor tender necessitated the three-month extension of the preliminary agreement. Russia Minister of Energy, Sergei Shmatko will announce the Kremlin’s new concept of the Belene NPP project and then Moscow will wait for the response of Bulgaria Prime Minster, Boyko Borissov. Most probably the Kremlin will propose the plant to be constructed after all at the cost of the Russian share in it.
Source: Standart (11.12.2009)

EU Parliament Approves EUR 75 M for Kozloduy Nuke The European Parliament has approved the EU budget for 2010. It gives Bulgaria a green light to additional compensations on the decommissioned four units of Kozloduy NPP. Out of the negotiated 300 million euro compensations for Bulgaria, 75 million euro are provided in the EU budget for 2010. The rest of the funds will be paid in parts till 2014. So far, Bulgaria has received a total of 550 million euro of compensation for Kozloduy NPP pre-term closure of units.
Source: Standart (18.12.2009)

Melrose to Invest US $ 78 M in Gas Projects in Bulgaria Edinburgh-based oil explorer Melrose Resources plans to invest 78 million dollars in its projects in Bulgaria next year. Next year, Melrose plans to spend $51 million in prospecting and development of the Kavarna and Kaliakra fields in 2010. The group plans to invest 27 million US dollars in the Galata field to turn it into a gas storage facility.
Source: Standart (21.12.2009)