NEC undertakes Kremikovtzi on rescue plan National Electricity Company (NEK) will become the majority shareholder in Kremikovtzi with 70 percent of the capital, if the recovery plan is adopted. On 30 December the last updated plan was submitted to the Ministry of Finance. "We considered all remarks made by the finance minister. -Claims to be converted into share capital of the company are shown. Simeon Djankov will now have to decide whether to authorize the rescheduling of the public debt for a period of 8 years," said the assignee in bankruptcy of the steelmaker Bankov. 14 creditors, including NEK, have pledged to transform their claims into shares of the plant. According to recent estimates, if the plan is approved, NEK would receive 60 million shares with a nominal value of BGN 1. "It is clear that NEK will not begin to make steel, but it may temporarily manage the plant until a suitable buyer is found and a deal is made," said Bankov. According to him, at a later stage, the shares could be sold for more than BGN 200 million.
Source: Trud (08.01.2010)

The former fertilizer plant Chimco in Vratsa, which closed 6 years ago, will run to months. The new owner Nikolai Galchev gave such assurances to the mayor of the city Konstantin Shahov. Several days ago the businessman from Blagoevgrad, owner of Galchev Engineering, bought the shares from Novo Chimco through the company Ecoen. His goal was to implement the recovery program of the plant. The factory has accumulated BGN 160 million debts to Bulgargaz, NEC and other creditors. So far Galchev has purchased the controlling stake for BGN 85,740 million, as with them he will repay half of the old debts. According to professional chemists, however, the condition of the technical equipment of the plant is desperate and workshops are looted.
Source: Trud (19.01.2010)

Transneft Hints Bulgaria Omitted from Russian Oil Pipeline Russian state-owned company “Transneft” has started talks with Turkey, Italy, and Greece for forming a consortium to manage the two oil pipeline projects – Burgas-Alexandroupolis and Samsun-Ceyhan. This has been announced by the President of Transneft, Nikolai Tokarev, as cited by the Russian agency PRIME-TASS. Tokarev has said there was a real possibility to unite the two projects for oil pipelines circumventing the Turkish straits, and that the idea was currently a matter of discussion among the Russians and Turkey, Greece, and Italy. In his words, the other parties have accepted with interest the idea to bind together the two pipeline projects in one consortium because such an arrangement would create an opportunity for eliminating other proposed routes and would ensure the high quality of the oil delivered through both pipes. Tokarev is quoted as saying that the proposal of the Turkish side to give the Russian companies favorable conditions for transporting oil through the Bosphorus if they participated in the Samsun-Ceyhan oil pipeline was also very appealing. He has underscored that the two routes were not competing. In the report of PRIME TASS there is no mention of Bulgaria, which is one of three participants together with Russia and Greece in the Burgas-Alexandroupolis oil pipeline – that is actually supposed to pass mostly through its territory.
Source: Darik Radio (20.01.2010)

Bulgaria's largest coal-fired thermal power plant Maritsa East 2, part of state-owned power group BEH, launched the second phase of a BGN 100 million overhaul programme of unit 6 to dial up its capacity to 230 MW from the current 210 MW. The first phase was completed in 2009 and modernised units 1 to 4. Japanese company Toshiba was picked to replace the unit’s rotor, while local company Risk Engineering will install a new power generator. The upgrade will increase the complex’s combined nameplate capacity by 80 MW from 1,556 MW at present.
Source: Dnevnik (20.01.2010)

Bulgarian Government Puts NPP Belene on the Counter The tender for the construction of NPP Belene will be announced by the end of the year, Bulgaria's Economy and Energy Minister Traycho Traykov said emerging from a meeting with his German counterpart, Mr. Rainer Bruderle on Monday. Minister Traykov was on the Bulgarian delegation led by PM Borissov that paid an official visit to Berlin. Minister Traykov suggested that the procedure for selection of a strategic investor in the Belene project will start before the end of the year. "The second stage of the selection of a consultant for the tender has already started," he added. To his words, some of the biggest energy companies in Europe are expected to take part in the tender, including Germany's RWE, which pulled out of the project a few months ago. "We will not set geographic quotas for the participants in the tender, although we want to attract the interests of Europe's energy giants in NPP Belene," Mr. Traykov said. "We had to freeze the contracts signed by the previous government, because a lot of money had been poured in the Belene project so far without any result," Bulgaria's PM said during talks in Berlin. "We are going to review the project's form and calculate all costs of its realization," Borissov added. To his words, the Russian companies interested in Bulgaria's energy project appreciate the pragmatic energy policy of the government in Sofia.
Source: Standart (27.01.2010)

Bulgaria likely scapegoat for Burgas-Alexandroupolis The lack of an official reply from the government about Bulgaria's participation in the Burgas-Alexandroupolis oil pipeline has started to tax the patience of the majority shareholder in the project, Russia's Transneft. The obscurity about the implementation of the project has shifted Russia's attention to the alternative pipeline of Samsun-Ceyhan, experts said. If Moscow withdraws from Burgas-Alexandroupolis, Bulgaria may bear the blame for the failure of the project, Trans-Balkan Pipeline Bulgaria CEO Plamen Rusev pointed out. Thus Bulgaria may be forced to recover all expenses made so far, which amount to some EUR 25 or 30 million. Besides, additional forfeits may be claimed from Bulgaria that may reach as much as EUR 300 million. There are good grounds for such claims, as Bulgaria has not yet given an official reply whether it will participate in the pipeline construction or not. Moreover, it has not yet paid its EUR 5 million shareholder contributions to the project design company. During the meeting of the Bulgarian-Russian intergovernmental commission last December Sofia promised to effect the payment within a few weeks but that has not yet happened, Rusev pointed out. It is not even clear which ministry will be in charge of the project. A proposal for transferring Burgas-Alexandroupolis from the regional ministry to the economy ministry was on the cabinet's agenda last week but it was not put to vote. The government is obviously trying to postpone its decision on the pipeline. All that gives reasons to Moscow to shift its focus to Samsun-Ceyhan. On October 19, 2009 Russia's Rosneft, Transneft and Sovkomflot announced they will take part in the construction of the pipeline and supply oil for it. Until then the main shareholders in the project were Turkey's Calik Energy and Italy's Eni. The pipeline is planned as a Bosporus bypass located on Turkish territory only. It will connect the Black-Sea port of Samsun with Ceyhan on the Mediterranean. In the middle of January 2010 Transneft's head Nikolay Tokarev said that the two projects may be united into one consortium. In his words the option has been discussed and met with understanding by Turkey, Italy and Greece. Such an option has to do with Russia's participation in the projects, Plamen Rusev explained. That most probably concerns its participation with a single company in both projects. It is impossible to merge the two projects physically, as the pipelines are at a different stage of implementation and have different shareholders. What is more, Turkey and Greece are direct competitors. Greece's participation in Burgas-Alexandroupolis is connected with its desire to have a share in oil transportation in the region. It is not very realistic to expect that Athens will readily accept the Samsun-Ceylan project.
Source: Pari (27.01.2010)

Belene Project to Start with Russian Funds "It is not excluded that Belene NPP project be launched with Russian resources. One of the options that are discussed is a preliminary financing by the Russian side," Bulgaria's Energy Minister Traicho Traikov said. Sofia and Moscow will keep small shares in the project, while the majority package will be offered to a private investor at a tender. Talks are held with German, Italian and French companies," Minister Traikov added. Minister Traikov also informed Bulgaria did not have to pay damages if the Bourgas-Alexandoupolis oil pipeline project is not realized. Earlier, media informed that Bulgaria should pay damages of EUR 300 million if the project fails.
Source: Standart (28.01.2010)

Maritsa Iztok 2 to invest BGN 100m in upgrade Last was one of the most successful years for Maritsa Iztok 2 thermal power plant (TPP), which is part of Bulgarian Energy Holding (BEH), CEO Georgi Hristozov told the Pari daily in an interview. Results The company reported record-high electricity production and achieved very good financial results. Six of its eight units are already equipped with desulfurising facilities and have European certificate issued by TUV Rheinland. The rehabilitation of the last two units will be completed by the end of 2011. The project amounts to EUR 226 million. The investment programme for 2010 includes reconstruction and modernisation, as well as construction of new facilities, and amounts to BGN 100 million. However, the financial crisis hit most enterprises in Bulgaria. Electricity consumption decreased in 2009 and Maritsa Iztok 2 failed to sell 3 billion kWh on the market. The management cut spending to ensure better financial results. Finance Maritsa Iztok 2 TPP expects to book a pre-tax profit for 2009. Operating income stood at BGN 582,276, expenses, at BGN 466,179. That makes an operating profit of BGN 116,097. Total assets amounted to BGN 1.093 million at the end of the year. Despite the global economic downturn, Maritsa Iztok 2 regularly pays its loan installments, dividends and taxes. The company is one of the biggest taxpayers in this country. The taxes and insurance contributions paid in 2009 alone exceeded BGN 55 million. Maritsa Iztok 2 paid BGN 13.366 million dividend to BEH for 2008 and the remaining BGN 8.300 million will be transferred by the end of June. The dividend for 2009 will amount to BGN 14.419 million.
Source: Pari (29.01.2010)

Oligarchs vs Euro "Oligarchs hamper Bulgaria on its way to the adoption of Euro," Vice PM Djankov said. "The energy lobby, catering to the Russian interests, is afraid that when the Bulgarian economy becomes a part of the European this would put an end to our country's dependance on Moscow," explained Bulgaria's No.1 Financier. According to him, the oligarches are interested in the lifting of the monetary board, giving up the idea of euro adoption and the construction of the Belene nuke. They fear that the reforms I?m implementing will be a success, Djankov added. In his opinion, the opposition attacks against him are an attempt at keeping the status quo. To me the fact that political failures like Sergei Stanishev, Rumen Ovcharov and Stefan Sofianski want my resiugnation means that what I'm doing runs counter to their interests, said the Vice PM.
Source: Standart (01.02.2010)

Ankara, Sofia – engines behind Nabucco gas pipeline project Bulgaria and Turkey will build two liquefied natural gas (LNG) terminals at the Sea of Marmara, a new pipe for alternative gas supplies and join forces on the Nabucco gas pipeline, under a new cooperation memorandum signed in the Turkish capital. Bulgarian energy minister Traycho Traykov amd his Turkish counterpart Taner Yildiz agreed that Bulgaria’s state-run gas company Bulgargaz and Turkish Botas will take around a year to study the projects. Speaking to Dnevnik, Traykov said the agreement calls for technical capacity for Turkish gas deliveries via an existing Russian transit pipeline in case of a new suspension of supplies from Moscow. The new pipe will link Marmara Sea terminals with Lozenets compression station. According to preliminary estimates by Bulgargaz, Bulgaria will pump around EUR 120 million into the project. The Turkish pipeline could carry gas from Azerbaijan, Qatar or Egypt. During the meeting, Turkish prime minister Recep Tayyip Erdogan urged Bulgaria to back the acceleration of the Nabucco project, which will which plans to pump gas from central Asia to Europe starting in 2013.
Source: Dnevnik (01.02.2010)

Krasimir Parvanov is the new CEO of NEC, announced yesterday the Bulgarian Energy Holding. Parvanov will replace the current director Georgi Mihov. The change aims at the optimization of the company, improvement of teamwork in decision-making by the Board of Directors and synchronization of development of the company in compliance with government priorities in the energy sector, announced by the Ministry of Economy and Energy. Parvanov’s last employment was in CEZ Bulgaria. There he was Director of Investments.
Source: Monitor (02.02.2010)

Bulgaria's Cabinet to Assign New Bank on Belene NPP Project After NPP "Belene" project is restructured and a new consultant assigned, which most probably will happen by the end of 2010, the need of a new structure bank will be also considered, Bulgaria's Ministry of Economy, Energy and Tourism regarding the information that BNP Paribas has withdrawn from the project. According to the Ministry of Economy and Energy even on November 25, 2009 the National Energy Company (NEK) and the French BNP Paribas broke up the mandate agreement on the project which defined the responsibilities of the French bank on a mutual consent.
Source: Standart (03.02.2010)

Bulgaria's Cabinet Ratifies Nabucco Project "Nabucco gas pipeline will be fully operational in 2020," stated Bulgaria's Minister of Economy and Energy Traicho Traikov commenting the ratification of the agreement in Bulgaria's Parliament. Bulgarian MPs unanimously passed the document. The pipeline will transport natural gas from Turkey's eastern border to Austria via Bulgaria, Romania and Hungary. "So far, only Hungary has ratified the project while in the rest of the countries its implementation is at an advanced stage and I am happy that Bulgaria is the second country to ratify the Nabucco project. This is indeed a priority project of the EU," Minister Traikov said further. Traicho Traikov also added that the first sector of the Nabucco pipe would be put into operation by the end of 2015, the second one would start functioning in 2017 and in 2020 the gas pipeline should start working at its full capacity.
Source: Standart (04.02.2010)

Nabucco seeks EUR 2bn financing from EIB The Nabucco consortium is seeking EUR 2 billion financing for the gas pipeline, Reuters cited European Investment Bank (EIB) vice president Mathias Kollatz-Ahnen as saying. In his words, the partners will have to pass legislation that approves the pipeline's transit in their countries before the bank can sign off on such a loan. However, the bank is willing to contribute to the financing of this important project, Kollatz-Ahnen said. Of the five transit countries Bulgaria, Hungary and Austria have ratified the agreements for the EUR 7.9 billion project. The other partners in the project are Romania and Turkey through their national companies, as well as Germany's RWE. The construction of Nabucco will cut dependence on Russian natural gas, which makes up nearly a quarter of European consumption.
Source: Pari (09.02.2010)

Gazprom agrees to direct gas supply contracts The new gas supply contracts between Bulgaria and Russia will be signed directly and will exclude intermediaries. That emerged after the meeting of Bulgaria's president Georgi Parvanov with Alexey Miller, chairman of Gazprom's management board. The two discussed the South Stream project and new contracts for gas supply and transit. Bulgaria asked for direct supplies without intermediaries in the spring of last year, ex energy minister Petar Dimitrov reminded. Currently there are three gas providers to Bulgaria: Overgas Inc, Wintershall and Gazpromexport. The contracts with them expire at a different time until 2012. Miller demanded that Bulgaria's new agreement with Gazprom should be linked to the South Stream project. According to him, Bulgaria's interests will be protected. Miller paid an unexpected visit to Sofia and had a meeting with prime minister Boyko Borisov and energy minister Traycho Traykov as well.
Source: Pari (17.02.2010)

Bulgaria to Buy Gas Directly from Gazprom Bulgargaz will buy natural gas directly from Gazprom or its daughter company Gazpromexport, Director of Bulgargaz Dimitar Gogov stated for the Bulgarian National Radio. A contract will be signed with one of the Russian companies which will gradually substitute the contracts with the intermediaries which expire in two years. In the coming weeks it is likely to have a development in the negotiations for a change in the formula of pricing of the gas which Bulgaria buys from Russia. With a coming decision of Bulgaria's cabinet, the Bulgarian share in Bourgas-Alexandroupolis oil pipeline will be shifted from the ministry of economy to the ministry of finance.
Source: Standart (18.02.2010)

FinMin to control stake in Burgas-Alexandroupolis The finance ministry will take over the control on Bulgaria's interest in Burgas-Alexandroupolis oil pipeline, it emerged after a cabinet meeting on Wednesday. The stake of the ministry of regional development and public works in Technoexportstroy, which presents Bulgaria in the project, will be transferred to the finance ministry, regional minister Rosen Plevneliev said. The cabinet will take its final decision on the operation next Wednesday. As much as BGN 50,000 will be transferred from the republican budget to the regional ministry for the stake. The transfer of the stake is aimed at consolidating the state's position, said Plevneliev, commenting on the motives for the decision. Bulgaria owes EUR 4.690 million to the engineering company that will build Burgas-Alexandroupolis. Another EUR 1.225 million is due for the first quarter of 2010. Next week finance minister Simeon Dyankov will explain how the dues will be paid, Plevneliev said. Upon taking office, prime minister Boyko Borisov was categorical that the Burgas-Alexandroupolis pipeline will not be built unless there are full guarantees for the environment along the project's route. No progress has been made so far on the environment impact assessment. The government is firm that it will not come up with a decision on the project's implementation before an environment impact assessment is prepared according to the highest international standards, Plevneliev pointed out. No such documentation has been filed yet, he added.
Source: Pari (18.02.2010)

The Bulgarian Energy Holding (BEH) -- the catch-all structure for the nation’s top energy assets -- will provide a loan to state-run power utility NEK to repay BGN 90 million in power purchase debt to Kozloduy nuclear power plant, a company source said. BEH board chair and deputy energy minister Maya Hristova told Dnevnik discussions are being held on such an option but no final decision has been taken yet. NEK said a number of options are on the menu but declined to elaborate. Sources close to the matter told Dnevnik the holding company will most likely make a BGN 75 million loan to NEK, with the decision expected at Friday’s board meeting.
Source: Dnevnik (19.02.2010)

Russia's Energy Minister Arrives in Sofia to Speed up NPP Belene Project Russia's energy minister Sergey Shmatko arrives in Sofia to discuss with his Bulgarian colleagues the implementation of the NPP Belene project. Mr. Shmatko will be leading a delegation of Russian energy experts together with Rosatom Director Sergey Kirienko. The Russians are expected to offer their Bulgarian colleagues a bank loan of two billion euro to finance the work on the power plant until 2012. Shmatko and Kirienko will first have talks with Bulgaria's energy minister Traycho Traykov. Well-informed sources told the Standart that the Russian delegation would be received by PM Boyko Borissov. During the talks with their Russian colleagues, the Bulgarian energy experts will insist on attracting a European investor to NPP Belene project. The negotiations will be considered successful if a concrete decision for the future of Bulgaria's second nuclear power plant is reached. The exact form of the Russian loan for the constriction of NPP Belene is still unclear. Most probably, a decision on this issue will be taken today. The energy experts of Bulgaria and Russia are expected to discuss the realization of the other two big energy projects - South Stream and Burgas-Alexandroupolis. Gazprom CEO Alexey Miller paid a surprising visit to Sofia on Tuesday. He promised to meet all demands of our experts concerning the supply and transit of Russian natural gas to Bulgaria.
Source: Standart (19.02.2010)

BG Economy Minister Rescues Gas Pipes from Russia The Bulgarian Government has taken urgent measures to rescue the Bulgarian gas transport system from the appetite of the Russians. The Bulgarian Ministry of Economy will abstain for the time being from listing 15% of Bulgartransgaz at the stock exchange, reported Minister of Economy, Traycho Traykov in an interview for a Bulgarian daily. These measures aim at rescuing the pipeline from Russia's appetite. If the shares of the gas transporting company were listed at the exchange, Gazprom would buy them out right away. This would solve their problem with the implementation of South Stream project, experts believe. Bulgaria insists that the new gas pipeline would pass across Bulgaria through completely new pipe network while Russia has repeatedly stated that the currently existing network might be employed in the project which would be more profitable for Moscow.
Source: Standart (23.02.2010)

Lack of strategy may thwart big privatisation hopes Prime minister Boyko Borisov recently said that privatisation revenue in 2010 may reach BGN 1 billion. We asked economists, member of parliament and government officials if they think the statement is a PR trick or a realistic objective. Most of them commented it is an ambitious target that is not very likely to be attained. To achieve the cherished goal, the government will rely mainly on the sell-off of energy companies or stakes in them. The highest market price can undoubtedly be taken for a minority package in Bulgarian Energy Holding. For the purpose, a decision has to be taken to remove the holding from the list of companies banned from privatisation, the chairman of the former Privatisation Agency (now Privatisation and Post-Privatisation Control Agency), Todor Nikolov, said. A proposal for revision of the list is expected to be submitted about the middle of the year. It is yet to be decided what share will be offered for sale and on which stock exchange. Another attractive option is the sell-off of the state's minority packages in the electricity distribution companies. Energy privatisation is a very delicate issue and must be handled with caution, MP Anna Yaneva (Bulgarian Socialist Party) pointed out. I do not think the state should renounce its share in the electrical utilities at this stage, because it will lose the instrument of controlling their operations, she explained. Bulgaria can hardly rely on receipts from the sale of the heating utility in Shumen for instance, as the company has been unsuccessfully offered for privatisation twice so far. Toplofikatsia of Shumen's debts to Bulgargaz exceed its capital; besides, its sale is not good from the viewpoint of consumer base, the deputy chairman of the association of heating utilities, Valentin Terziyski, said. The paradox is that the government relies on energy companies for the bulk of privatisation revenue, while it does not have a long-term strategy for the sector, Terziyski commented. The strategy now followed was adopted in 2002, while the draft prepared in 2008 has not been approved yet. According to Terziyski, the energy sector should be reviewed to ensure complete transparency and clear strategy before privatisation begins. Otherwise potential investors will try to minimise their risk and even the attractive companies and stakes will not get a good price, he explained. BGN 1 billion revenue is absolutely unrealistic, unless the list of companies banned from privatisation is revised. Anyway, I believe that Bulgartabac Holding will be sold this year, economist Vladimir Karolev said. The company's value has been falling in the wake of its shrinking market share but privatisation as a single entity is the right approach, MP Kornelia Ninova (Bulgarian Socialist Party), said. However, the procedure may take more time and continue until the end of the year.
Source: Pari (23.02.2010)

Bulgartransgaz, part of the Bulgarian Energy Holding, will not be listed on BSE and the IPO is postponed for the time being because t is more important that the state remains in control of the company’s assets, minister of Economy and Energy Traycho Traykov announced. The company is the main figure in the negotiations with Gazprom for new gas delivery agreements and participant in the South Stream gas pipeline. The possibility of Gazprom acquiring a share in Bulgartransgaz may affect Bulgaria’s strategy for South Stream, Traykov explained.
Source: econ.bg (24.02.2010)

Nabucco Pipeline Construction To Start in 2011 The construction of the Nabucco gas transit pipeline should start by the end of 2011, and should be completed by 2013. This was announced Tuesday night during an energy strategy forum in Sofia by Christian Dolezal, Spokesperson of the Nabucco Consortium. Dolezal has made it clear that the Nabucco pipeline will be transiting natural gas from Iraqi Kurdistan, Turkmenistan, and Azerbaijan. He said the complete investment plan and the funding for the pipeline should be available by the end of 2010. The Spokesperson has defended the feasibility of the EU-sponsored Nabucco project by saying that natural gas demand is going to increase in the long run even though it will fall over the coming years. Dolezal said the gas transit pipe would bring a lot of investments in energy storage facilities and hubs.
Source: Darik Radio (24.02.2010)

Russia might gain full control over Belene nuke – Kommersant Russia might acquire up to 80% in the capital of Bulgaria’s Belen nuclear power plant project against providing a EUR 1.9 billion loan to finance construction works, Russian newspaper Kommersant reported. Sofia could buy out this share if Belene sells power on the deregulated market but unless it uses this option Moscow will complete the facility and retain ownership. On Tuesday, Bulgaria’s energy minister Traycho Traykov announced the state will keep 50% in the project if it attracts a strategic investor. He said Russia might get an up to 15-20% share, with the balance paid off in the form of electricity. The Belene nuclear power project was designed to offset the loss in generating capacity at Bulgaria’s Kozloduy nuclear power facility following the premature closure of two pairs of 440 MW reactors and will be developed by Russian company AtomStroyExport. Sergey Kirienko, director general of Russia's state-owned nuclear power corporation Rosatom, said Friday Russia could lend Bulgaria around EUR 1.9 billion so as not to stall building works until it finds a strategic investor. The proposal comes after last year German energy utility RWE pulled out of the project.
Source: Dnevnik (25.02.2010)

Listing BEH companies to restore interest in capital market The year 2009 was very difficult for the capital market in Bulgaria, though it was better than expected for UniCredit Bulbank. We were the only one to carry out significant deals, i.e. Chimimport's capital increase with privileged shares and BG Agro's listing, which was the only IPO in 2009, the deputy head of corporate, investment and private banking at UniCredit Bulbank, Spas Vidarkinski, told the Pari daily in an interview. Both operations were successful but that could not help the market maintain acceptable liquidity levels. As a matter of fact, smaller markets are much more vulnerable to crises. Liquidity The main reason for the poor interest of investors is the low liquidity of the market as a whole. There are not more than 10 stocks that trade actively. Investors' concerns that they may have to sell out of a position in the short term discourages them from buying stock, even if they like a given company. The first thing that needs to be done to increase liquidity is listing new and big companies. The government's decision to list the Bulgarian Energy Holding (BEH) will catalyse the process. The companies in the holding are big enough and if larger stakes are offered, that will lure investors back to the market. Another important factor is listing bigger packages. The free-float of many companies in Bulgaria is very low. All holdings below 5% are considered free-float but many of the shareholders with less than 5% are not very active, which hampers the liquidity of the position. Some companies on the developed markets have 100% shares outstanding. Measures The new management of the Bulgarian Stock Exchange (BSE) have a limited set of tools to revive the market, as there are many outside factors. What they can do is work towards attracting issuers and investors. It is good that now Bulgarian companies can get listed on the Warsaw Stock Exchange, as that will improve the liquidity of the BSE, too. Double listing will give investors comfort in opening such positions. However, companies have to be big to meet the criteria of the Warsaw market. It is a fact that foreign investors are not very interested in the BSE at present, so getting listed in Warsaw is a way to reach those investors. Forecast Even the most optimistic projections about Bulgaria's GDP in 2010 are about zero. UniCredit forecasts a drop in GDP. Given all that we cannot expect many positive developments, Vidarkinski pointed out. In 2009 a lot of companies started considering getting public. However, the situation so far in 2010 does not suggest the time for that has come. I expect things to get moving in the second half of the year, he said. Therefore in the end the year may turn out not that bad.
Source: Pari (01.03.2010)

Georgia Extends Its Gas Transit Network to Export Liquefied Gas to Bulgaria The Georgian Energy Minister Alexandre Khetaguri has notified his Bulgarian counterpart that his country was ready to complete by the end of 2010 an additional 30 km pipeline to connect its gas transit system to the Port of Supsa on the Black Sea. This will allow Georgia to increase its capacity for transiting natural gas by 3 billion cubic meters, and will make possible the export of liquefied natural gas to Bulgaria, the Bulgarian Economy Ministry said in a statement. Minister Khetaguri has declared Georgia’s readiness to participate in the discussions for transit of natural gas from Azerbaijan to Bulgaria through the Black Sea.
Source: Standart (04.03.2010)

Bulgaria, Serbia to Sign Pipeline Deal The energy ministers of Serbia and Bulgaria wil sign a deal on Friday in Brussels, which will enable the implementation of the gas interconnection project between the two countries. The 180-kilometre, 2 billion cubic metre gas pipeline passing through Nis and crossing the border near Dimitrovgrad will be the first interconnection between the Serbian and Bulgarian transportation systems. Serbia's Energy Minister Petar Skundric will travel to Brussels to sign a joint statement with his Bulgarian counterpart Traicho Traikov, the ministry said in a statement on Thursday. The European Union Energy Commissionaire Guenther Oettinger will also attend the ceremony, it added. The cost of the pipeline is estimated at between EUR 100 M and EUR 120 M.
Source: Darik Radio (05.03.2010)

New Gas Pipeline Project Launched The first real step towards building a gas pipeline connecting Bulgaria and Greece is already a fact. Bulgaria's minister of economy, energy and tourism Traycho Traykov signed in Thessalonica a protocol for establishing a joint company for designing, building and exploitation of the new pipeline. By signing the protocol Bulgaria confirmed its participation in the second priority EU project for a gas pipeline, connecting Turkey, Greece and Italy. Bulgarian Energy Holding holds 50% of shares of the new company. The rest belong to IGI Posseidon consortium, which unites the Greek company DEPA and the Italian 'Edison' company.
Source: Standart (05.03.2010)

Bulgaria to Import Gas from Qatar Bulgaria's Minister of Energy Traycho Traykov and his Qatari counterpart Abdullah Bin Ahamad Al-Attiyah discussed Bulgaria's possibilities to import liquefied gas from Qatar. Both ministers took part in an international conference on the use of nuclear energy for peaceful aims in Paris. The forum was inaugurated by France's President, Nicolas Sarkozy. Traykov presented Bulgaria's vision for the nuclear energy development in the country. To his words, Belene NPP will be restructured as a private project and Kozloduy NPP is currently undergoing preliminary research targeted at planned construction of one or two more nuclear units.
Source: Standart (10.03.2010)

South Stream and Nabucco Should Combine to Cut Costs The sectors of the gas pipelines South Stream and Nabucco which cover one and the same route should get united, proposed Paolo Scaroni, CEO of Italian company Eni, cited by ITAR-TASS. This move would reduce the expenditures and increase the efficiency, Mr. Scaroni grounded himself. In his opinion, Europe should increase the investments in infrastructure projects. As it is known both gas pipelines are planned to cross Bulgaria's territory.
Source: Standart (11.03.2010)

System bug may thwart fast privatisation plans The obscurity about the mechanism to be used for sell-off of the state's residual stakes in companies may foil the operation in embryo. Options considered so far include listing companies directly on the Bulgarian Stock Exchange (BSE), organising public auctions through the BSE, and direct negotiations. However, a Pari daily's inquiry shows that none of them guarantees success and the state may fail to get the much-needed revenue. If the government decides to sell state stakes by centralised auction on the BSE, that will exclude institutional investors from the bidders' list. The law does not allow pension funds and insurers to invest in companies that are not traded on the official market. Interest in the residual stakes could be shown by the companies' current majority owners or by portfolio investors. However, equity investors are rarely ready to buy small stakes. The electricity distribution utilities are the most attractive companies for investors. However, the government cannot list them on the BSE, because that has to be decided by their majority owners. What is more, the majority owners are not interested in buying the state's 33-percent stake in the companies. The sale of the state's minority stakes can provide between BGN 300 and 500 million. The exact amount will depend on which companies will be offered, Privatisation and Post-Privatisation Control Agency acting executive director Todor Nikolov told the Pari daily. The estimation does not include the possible sale of a minority stake or a subsidiary of Bulgarian Energy Holding (BEH). Listing 10 or 15% of BEH may secure an additional revenue of BGN 1 billion. The list of minority stakes for sale should include a portion of BEH, which will lure investors, Nikolov advised. Minority packages that are currently up for sale will also be put on the list. These include the former duty-free zones in Varna (46%), Bourgas (19.45%) and Plovdiv (46.4%). The first package is being offered by auction. As for the other two stakes, two procedures have failed so far and a third one is under way. Even now the agency is selling minority packages, provided they do not exceed 10%. What is new in the idea is to put bigger stakes under the hammer. Currently centralised auctions are closed procedures that do not allow achieving a good price. Making the auctions open will encourage bidding, Nikolov was adamant. The main problem in the upcoming privatisation procedures is connected with technical issues. The process will depend on the companies' managers and majority owners. The second problem is the interest the stakes can attract. On the one hand, the crisis has substantially reduced interest in privatisation. On the other, the very condition of the companies is of crucial importance.
Source: Pari (17.03.2010)

Bulgaria to Negotiate Qatari Funding for Danube Bridge 3 During his visit to Qatar on Sunday, Bulgaria Prime Minister, Boyko Borissov will negotiate a large infrastructure project with the Emir of Qatar, Sheikh Hamad bin Khalifa Al Thani. Borissov will discuss the possibility for financing the construction of a third bridge over the Danube with the Qatari State Fund but the site has not been specified yet. Currently there is one functioning bridge over the Danube to Romania and another has been designed and financing partially ensured from the EU. Bulgaria’s aim is to attract investments from the Qatari Fund which is financed by the Emirate’s revenues from gas and oil. Experts believe that under the conditions of a financial crisis Qatar has the largest source of free capital for investments.
Source: Standart (19.03.2010)

Six candidates have submitted documents to bid in the tender opened by the Bulgarian Energy Holding for a consultant to help it decide how to proceed and attract new investors for the planned Belene nuclear power plant.The names of the companies were not disclosed by the holding.This is the first phase in the tender, which was opened by BEH on February 19. The shortlisted candidates will be invited to submit offers in the second part of the procedure. The project's consultant will be obliged to develop its economic model and proceed to the selection of investors, the update of the financial model, etc.
Source: Standart (26.03.2010)

SANS raise the curtain on grave embezzlements in Mini Maritsa Iztok Mini Maritsa Iztok SPLTD had been plagued by embezzlements worth billions in local currency, PM Boyko Borisov and the head of SANS Tsvetelin Yovchev announced during their visit at the Troyanovo mine. In Borisov’s words, the inspection gave them grounds to approach the prosecutor general and initiate a probe into the shady past of the state-owned company, suspecting serious misuse of funds. Borisov also asked the Bulgarian Energy Holding to reveal the perpetrators of the embezzlement in a report. Yovchev confirmed the allegations, saying the agency had been long investigating signals for financial violations in Mini Maritsa Iztok, mainly through orchestrated public procurement procedures, vague quality control and illicit price formation.
Source: Pari (31.03.2010)

Bulgaria and Turkey to Build Joint Gas Terminal Bulgaria and Turkey may build a joint terminal for delivery of liquefied natural gas. Bulgaria's Minister of Economy and Energy, Traicho Traikov, and his Turkish counterpart Taner Yildiz discussed the project. The capacity of the port will be 6 billion cubic meters and it will be located on Turkish seaside. During the energy forum held in Mexico Minister Traikov had a meeting with Oman's Minister for Oil and Natural Gas, Mohammed al-Rumhy who proposed that Bulgarian companies extract natural gas in Oman. Oman also showed interest in investing in Belene NPP.
Source: Standart (01.04.2010)

Nabucco Contradicts Not South Stream "The gas pipelines Nabucco and South Stream will not be in conflict when realized," reportedly said Bulgaria's Minister of Economy, Energy and Tourism, Traycho Traykov in front of the Atlantic Council in Washington, according to the Bulgarian News Agency. To his words, Bulgaria hopes both projects will be implemented despite the difficulties around Nabucco project. As long as South Stream is concerned, Traykov said that Bulgaria had established extremely constructive cooperation with Gazprom. "The moment details are tied up, a project company will be established to undertake the construction of the pipeline," Traykov explained.
Source: Standart (07.04.2010)

The Bulgarian Energy Holding (BEH) has registered a profit of BGN 72.5 M after taxes in 2009, a company report revealed. The Bulgarian state-owned energy giant paid a total of BGN 3.846 M in taxes for 2009. The 2009 profit of BEH shows a tangible increase as it is BGN 20 M greater than the after-tax profit the company made in 2008 when it was set up by the government of Sergey Stanishev. The company statement attributes the good results achieved by the Holding in 2009 to the successful economic policies and the implementation of austerity measures. In 2009, the total expenditures of BEH were BGN 9.817 M, a substantial decrease from the BGN 25,479 M it spent in 2008. The expenditures for outside services and salaries were reduced by BGN 1.5 M year-on-year. The company management stresses that it has managed to meet all of its responsibilities to Bulgaria’s national economy and its international commitments such as the participation in the Nabucco gas transit pipeline and the construction of a gas pipeline connection between Bulgaria and Greece despite the reduction of its spending. In addition to the taxes it paid, in 2009 the BEH also contributed BGN 47.03 M to the state budget in the form of dividends. The company states it expects even higher profits in 2010, and respectively, a greater contribution to the state budget.
Source: Darik Radio (08.04.2010)

Three Headed Dragon Dominates the Energy Supply A three-headed dragon in Bulgarian Energy Company has been stealing from the people for five years. The private energy supply companies CEZ, E.ON and EVN reap colossal profits at the expense of the Bulgarians and the state. The companies, which own the electric power distribution net, have been buying the electric power from the National Energy Company at 88 leva (1 euro=1,95 leva) and were selling it to the customers at 146 leva. The scandalous figures were announced by PM Boyko Borissov yesterday. He accused the state Energy Company of working at a loss and in interest of the private companies. The privatization contracts were signed during the ruling of Saxe-Coburg-Gotha -led cabinet and kept in secret because of the shameful clauses.
Source: Standart (08.04.2010)

The net profit of Bulgarian Energy Holding (BEH) increased some BGN 20 million to BGN 72.5 million in 2009. The holding reduced its expenses to BGN 9.8 million from BGN 25.5 million in 2008. Cost cutting is one of the best measures for fighting the crisis, the company said. The company's financial income increased substantially in 2009. They reached BGN 27.2 million from BGN 5.3 million in 2008. BEH paid BGN 47 million dividend to the state budget in 2009. That is the whole profit of the holding less the mandatory 10% reserves. The company paid BGN 3.8 million taxes.
Source: Standart (08.04.2010)

Electricity Prices in Bulgaria Go Down Prices of electricity in Bulgaria may fall for the first time in eleven years if the government manages to prove that the three utility companies operating in the country, CEZ, E.ON and EVN, had lied about the investments in the infrastructure and the energy distribution facilities that they were obliged to make under their privatization contracts. The surprising news was announced by the State Energy and Waters Regulatory Commission, which may introduce lower prices of electricity, if the ongoing audits at the utility companies ordered by PM Boyko Borissov prove that they had not fulfilled the investments that they were bound to make. Well-informed sources told the Standart that the electricity companies had not fulfilled the investments they had to make each year, but they still had had the cheek to ask for one in a row increase of the retail prices of electricity in the poorest EU member state. Even more disturbing is the fact that their recent request has been granted by the state regulator, which is currently rethinking its decision. "I hope the companies have not lied about the investments, because in this case we will impose on them fines worth millions of levs," PM Borissov said.
Source: Standart (12.04.2010)

BEH to be dissolved by end-June Bulgarian Energy Holding (BEH), which manages eight state-owned companies, will be dissolved by the end of June, minister of economy and energy Traycho Traykov said after meeting members of AmCham in Bulgaria. The holding will be split into independent companies initially, though other forms are also being considered, Traykov pointed out. One of the options is uniting gas companies into one group. Alternatively, trade companies may be put under one umbrella and their assets, under another, he added. BEH includes Maritsa Iztok Mines, Maritsa Iztok 2 thermal power plant, Kozloduy nuclear power plant, National Electric Company (NEK), Bulgartransgaz and Bulgartel. All companies are 100% owned by the state. The holding was set up in September 2008 to manage, assess and sell interests in the eight trade firms. We wanted to give BEH a chance and let it optimise the activities of the companies. However, we cannot see any positive effect yet, Traykov said. The government is considering privatising or listing NEK or parts of it on the stock exchange, the minister told reporters. The same holds true for Electricity System Operator and Maritsa Iztok 2. All documents have been prepared for a consolidation company that will sell the state's minority stakes, Traykov pointed out. Two of the three electricity distribution companies are ready to buy the state's 33-percent stake, he added.
Source: Pari (12.04.2010)

Bulgaria to shut BEH by June, sell off stakes in NEK The Bulgarian Energy Holding (BEH) -- the mega structure that lumps together the nation’s juiciest energy assets -- will be closed by the end of June, energy minister Traycho Traykov told businesses Monday. Speaking at the round table Bulgaria: Attractive Investment Destination hosted by the American Chamber of Commerce in Bulgaria (AmCham), Traykov explained the holding company has failed to prove it is fulfilling the purposes for which it was set up and going ahead will be efficient. BEH was incorporated in 2008 to group the assets of Bulgaria's sole nuclear power plant Kozloduy, gas monopoly Bulgargaz, Bulgartransgaz, telecommunications operator Bulgartel, NEK and ESO, coal-fired power plant Maritsa East 2 and the Maritsa East coal mines. Traykov mapped out two scenarios for the firms making up the group including continuing operations as separate entities or being lumped together in a number of holding companies by function. Gas companies could be put together in one entity and power transmission and distributions firms could make up a second one. Traykov said staff at the energy companies will be reduced but did not reveal any names. BEH booked a profit of BGN 72.5 million for 2009. Prime minister Boyko Borissov said last week the holding company has failed to deliver on its main mission of attracting financing for major investment projects and only generated profits through consultation. On Tuesday the Ministry of Economy is expected to present its new strategy for the development of Bulgaria’s energy sector. Stakes in state-run power utility NEK will be offered for sale by the end of the year.
Source: Dnevnik (13.04.2010)

Minister: Russian projects no sacred cows The large energy projects will be mentioned in Bulgaria's energy strategy but they will not be described in detail, minister of economy and energy Traycho Traykov said. The Russian projects will not be treated as sacred cows. Big projects should not be split into Russian and non-Russian ones, he pointed out. Parliamentary speaker Tsetska Tsacheva recently said in Moscow that Belene nuclear power plant, Burgas-Alexandroupolis oil pipeline and South Stream will make up the core of Sofia's energy strategy. The document will set the objective that renewable energy sources should make up 16% of total power production. Nuclear energy, which currently accounts for 33% of the output, will preserve or increase its share. Since nuke power is a low-carbon energy source, the government will provide institutional support. Whether the support will be in the form of investments is a matter of investment decisions, Traykov underscored.
Source: Pari (14.04.2010)

Bulgaria ponders new mega power utility as BEH goes After closing the Bulgarian Energy Holding (BEH), the Bulgarian government will lump together all energy companies including Kozlodyt NPP and Maritsa East 2 coal-fired power plant, deputy energy minister Maya Hristova said. Speaking at the Renewable Energy Sources & Energy Efficiency International Congress and Exhibition in Sofia, Hristova said the government has not yet come up with plans what stakes will be put on the chopping block. “We can potentially offer majority stakes but the plans will be drafted by June,” she said. Energy minister Traycho Traykov said on Tuesday that the BEH -- the mega structure that brings together the nation’s top-notch energy assets -- will be closed by the end of June as it has been ineffective and is therefore unnecessary. He explained the group failed to fulfill its mission to arrange financing for major energy projects and streamline operation of the assets of the companies it comprises. BEH came into being in 2008 to group the assets of Bulgaria's sole nuclear power plant Kozloduy, gas monopoly Bulgargaz, Bulgartransgaz, telecommunications operator Bulgartel, NEK and ESO, coal-fired power plant Maritsa East 2 and the Maritsa East coal mines. The Ministry of Economy said one of the options on the table is creating two holding companies that will include energy and gas firms. Hristova confirmed speculations that Kozloduy NPP and Maritsa East 2 TPP will most likely merge into NEK.
Source: Dnevnik (15.04.2010)

In order to stabilize the Bulgarian stock market a large stake from the Bulgarian Energy Holding (BEH) should be immediately floated on the Bulgarian Stock Exchange, experts said during the Pari Daily organized discussion on the problems of the financial markets. Analysts, financial experts, directors of asset management companies and economists participated in the event. Additional measures could include amendments to the regulation for management of pension funds, the experts said. Most of the participants believe that at least 49% of the state’s stake in BSE should be floated. Lower percentage will not have the desired effect, experts believe. 76% of approve BEH sell-off through the stock market. 18% of experts believe that listing of BEH on BSE will have limited effect, as this is not enough for attracting investors to the market. 6% oppose the idea with the argument that floating BEH will have no effect whatsoever.
Source: Pari (19.04.2010)

Russians to Build Power Plant in Bulgaria Russian Business group SINTEZ plans to built a 200-megawatt power plant in Bulgaria. According to the consortium's press office quoted by the electronic issue Big Power, the options for the power plant's construction have been discussed at a meeting of SINTEZ CEO Andrey Korolyov and Bulgaria's deputy minister of economy and energy Maya Hristova in Sofia. If constructed, this will be SINTEZ's second power plant on the Balkans after the one built in Skopje.
Source: Standart (21.04.2010)

Bulgaria Ready to Greenlight Construction of 7th Power Unit at NPP Kozloduy Maya Hristova, deputy Minister Of Economy, Energy And Tourism - Mrs. Hristova, experts have calculated that the constructions of new power units on the site of NPP Kozloduy is cheaper and more profitable for Bulgaria, and some investors have already lent an attentive ear to this idea. Can we assume that the Council of Ministers will soon greenlight such a project? - Yes, investors and energy experts are interested in the possible construction of an extra power capacity at NPP Kozloduy. But the council of Minister can decide on the construction of such a power unit only after a serious investor is found. The contracted company should demonstrate technical and financial abilities to realize the project, and it will also present the necessary certificates for safe exploitation of nuclear power facilities. If these conditions are fulfilled, the Bulgarian state will greenlight the start of the necessary procedures that will pave the way to the expansion of NPP Koloduy’s power capacity. - Is it true that Atomstroyeksport intends will claim compensations from the Bulgarian government for the delay in the implementation of NPP Belene project? - We are in negotiations with the Russian party over possible mutually beneficial outcomes of this stalemate situation. Experts are searching for options to re-negotiate some technical and financial conditions of the project. Our goal is to achieve greater flexibility in some of the most important clauses concerning the implementation of the project, which to allow for possible delays in its realization. If we succeed, the claims for compensations will simply be ruled out as irrelevant. - How could Bulgaria benefit from a gas pipeline connecting it with Greece? - At the beginning of March, the Bulgarian Energy Holding, DEPA of Greece and Edison of Italy signed several documents of key importance, which marked the first step towards the implementation of this project. The countries reached agreement on the principal issues and concerted some definite measures and schedules. The construction of the inter-system connection with Greece will link Bulgaria with the pipelines running through Turkey, Greece and Italy. This project will be financed through the economic restoration plan of the European Union. We expect that in May the European Commission will take the decision that will actually mean approval for the start of the project. - How would you comment the idea of uniting some sectors of the South Stream and Nabucco pipelines? -In principle, Bulgaria’s policy in energy sector is focused on securing more sources of energy supply and more routes. In both projects – South Stream and Nabucco – Bulgaria is neither a source nor a final destination. We are a transiting country and an intermediary consumer. To our country it is important to have a guaranteed gas supply at competitive prices and to reap sustainable profit from transit fees. - Recently, several publications have appeared in the press about natural gas deposits in Bulgaria. Will their development decrease the dependence of Bulgaria on Russian supplies? - Naturally a country with its own energy resources boasts the highest energy security. No matter how small are the local deposits Bulgaria should encourage research and development of new fields both in the Black Sea shelf and inland regions.
Source: Standart (26.04.2010)

Belene Nuke Project May Be Frozen over Construction Delay If the construction of the Belene nuclear power plant does not start within several months the foundation mattress of Unit 1 may crack because of atmospheric influence and will have to be conserved, vice president of Russian Atomstroyexport Gennady Tepkian warned during the energy forum in Sofia. According to his computations, the conservation process will cost over 7.5 million euro. Bulgaria’s National Electric Company should analyze the situation and decide if the conservation is necessary and, in case it is, find money for it, added deputy energy minister Maya Hristova. Atomstroyexport, picked to build Bulgaria’s second nuke on the Danube, has already ordered a larger part of the equipment for the Belene plant. However, even if Bulgaria gives up the project it will not affect negatively the Russian company, because it is currently building nuclear plants in several other countries around the world and would be able to sell the equipment there, Tepkian commented. Bulgaria will not start off the construction of the new nuke without a Western investor and the government didn’t approve the Russian offer for financing the project unless a Western partner is found, Maya Hristova said.
Source: Standart (27.04.2010)

Van Orden: It wasn’t necessary to shut down NPP Kozloduy reactors It wasn’t necessary to shut down reactors three and four of NPP Kozloduy, because they were still operational and safe, MEP Geoffrey Van Orden said. According to him, Bulgaria is quite right to claim higher compensations for the losses it has suffered from the power units’ premature decommissioning. “The compensations will be voted in the European Parliament on Wednesday and I truly hope that my colleagues will support them,” Van Orden added.
Source: Standart (27.04.2010)

Sofia Must Be Precise in Gas Talks with Moscow Mr. Dimitar Gogov, CEO of the state-owned company Bulgargaz - How are the gas supply negotiations with Gazprom going? - The talks are not so much about new gas supply contracts as about our desire to cut out any intermediaries from the chain and get down to the producers of Russian natural gas or at least to a company that is close to the direct producers. I think we are already close to signing an agreement with such a company. In this line of thoughts, the visit of Gazprom CEO Alexei Miler to Bulgaria in February was a positive sign for both sides in these negotiations. - Is Gazpromexport the company you mean? - I think Gazprom should decide that. But it could possibly be Gazpromexport, since they already hold a license to export Russian natural gas. - Will the intermediaries be cut out of the gas supply chain? - We want to get in touch with a company that is close to Gazprom, because Bulgaria's present suppliers or natural gas are merchants, but not producers. - Will Bulgaria see a new, more lucrative gas price-forming formula after the contracts with Gazprom are signed? - Prices will depend on our efforts, on the extent to which we will manage to successfully present our opinions to our partners about how the price-forming formula should be devised. A formula which will reflect all the nuances of the international market and the gas consumption in Bulgaria. - If after some time Bulgaria develops inter-system links with neighbouring countries - like the pipelines South Stream and Nabucco and also terminals for liquefied gas, will this affect the price? - Absolutely. Bulgargaz is interested in and will cooperate with all of its human and intellectual resources for the development and diversification of the Bulgarian gas-transport network.
Source: Standart (12.05.2010)

Bulgaria’s Corporate Commercial Bank, which is believed to finance the media group of mogul Irena Krasteva, holds nearly half of the money of strategic state-owned companies. The data was provided Sunday by Finance Minister Simeon Djankov at the request of the editors-in-chief of eleven of the biggest print media in Bulgaria, who approached the department, citing the law for access to information. The eighteen companies listed include the Bulgarian energy holding and its units (gas monopoly Bulgargas, gas pipeline operator Bulgartransgas, state power utility NEK, nuclear power plant Kozloduy, thermal power plant Maritsa East II), as well as tobacco monopoly Bulgartabac, Bulgaria Posts, Sofia Airport, the Bulgarian Railways Company. The data has been dated March 31, 2010. Nearly 65% of the money of these companies are concentrated in three banks, whose market share does not exceed 9% - Corporate Commercial Bank (48%), EIBank, where the prime minister's long-time live-in girlfriend Tsvetelina Borislavova holds a 18% stake and the Central Cooperative Bank, the data shows.
Source: Darik Radio (17.05.2010)

The Russian company Atomstroyexport will file a claim against the Bulgarian government over the delays in the construction of the Belene NPP. In the same time Minister of Economy and Energy Traycho Traykov opened an energy forum in Sofia. Traykov did not answer the question what will happen with the financial resources of the Bulgarian Energy Holding (BEH) after its liquidation planned for the beginning of the summer. Currently 95% of BEH’s finances are deposited in Corporate Commercial Bank.
Source: Class (18.05.2010)

Spare parts abuse was found during an inspection in Mines Maritsa Iztok. On the territory of mine Troyanovo-Sever are found illegally stricken out parts that were not used in the production. The violation is in particularly large size, said inspectors. Stocks are at a total value of BGN 15 400. Spare parts were found in a van outside the warehouse.
Source: Standart (18.05.2010)

PM Borissov: "Belene" One of the Most Important EU Projects "Belene" NPP project might become one of the most important on the Balkans and in Europe," PM Boyko Borissov said during his meeting with Stefan Mappus - Minister President of Baden-Wurttemberg federal state in Germany. According to PM Borissov Bulgaria has at hand all necessary documents to start the construction of "Belene" nuke. "However, after the German company RWE cancelled its participation we need to find a West European investor for the project," PM Borissov thinks. The future of "Belene" NPP would become clear after a tender for new strategic investor is submitted, minister of economy, energy and tourism Traycho Traykov stated during a discussion regarding the diversification of Bulgarian energy. "Besides, the technical project of the Russian contractor, Atomstroyexport has not been approved by the Nuclear Energy Regulatory Agency," Traykov added. He reminded that Bulgaria has not declined the Russian offer for financing the project till an investor is found but this offer has not been accepted either. Meanwhile the Czech Internet edition E15.cz reported that Atomstroyexport has concluded a contract with the US legal consulting company Sidley Austin LLP to defend the Russians' Interests in case Belene NPP project sees no improvement till the expiry of its contract with the Bulgarian National Electrical Company this autumn.
Source: Standart (19.05.2010)

NEK and EVN to sign a contract for the construction of the Gorna Arda hydropower cascadeù The negotiations between NEK (the National Electricity Company) and Austrian company EVN for the construction of the Gorna Arda hydropower cascade are expected to finish by the end of the year, said yesterday to Mediapool Peter Layr, Member of the Management Board of EVN AG. According to him, the technical assessments of the project should be clear by the end of 2010. Afterwards, the process of issuing building permits should be initiated. According to EVN forecasts, the construction of the cascade could cost about ˆ400 mln. The technology, as well as environmental requirements, have changed in the last 10 years and we will have to comply with EU requirements while we try to optimise the project, said Layr. In his words, Bulgaria is a key location for EVN investments and the cascade is of particular importance. The request of the Austrian shareholder is for NEK to remain a partner in the project in order for Bulgarian interests to be represented. Last year, the company offered the State to become a majority owner in the project by acquiring a 75% stake in the cascade. So far, NEK had 70% of the project and the remaining 30% were controlled the Turkish conglomerate Ceylan Holding. After the bankruptcy of the Turkish company, the company CCG Insaat Sanayi Yatirim Ve Turizm A.S took over the project. More details on the Gorna Arda cascade will be reported after the contract with NEK is signed. Then, the ˆ75 mln compensation request, for which Ceylan Holding filed a lawsuit with the ICC International Court of Arbitration in Paris, will be waived. EVN and the Turkish company have already agreed and have signed document for the transfer of the shares, explained Layr. He refused to announce the price at which Ceylan Holding transferred its stake to the Austrian company.
Source: Class (21.05.2010)

Experts Forecast Natural Gas Price Hike in Bulgaria The price of natural gas prices in Bulgaria is predicted to up in the summer of 2010 although it is unclear yet by how much, according to the chair of a state regulator. “There will be a hike in natural gas prices by end-year, we just have to calculate the precise amount of the hike. Luckily, the summer is coming up so the gas price increase will not affect the heating prices immediately,” explained Angel Semerdzhiev, Chair of the State Commission for Energy and Water Regulation (DKEVR), quoting documents that he received from Bulgarian state natural gas monopoly Bulgargaz. Last week Semerdzhiev announced he expected the gas price to go up by 10-15% as of July 1, 2010. However, on Thursday he clarified that this forecast had not factored in the recent collapse of the exchange rate of the euro, which hit a four-year low against the dollar earlier in the week.“We are buying the natural gas in US dollars, so this is invariably going to have an effect on the coming gas price increase,” stated the head of DKEVR.
Source: Standart (21.05.2010)

Brussels Pays Bulgaria EUR 300 M for Kozloduy Compensations Brussels has finally approved additional compensations of 300 million euro for the pre-term decommissioned four units of Kozloduy NPP. Yesterday, with 518 votes "pro" the EP agreed that Bulgaria should receive the additional compensations till 2013. Some 180 million euro will cover the taking out of operation of the decommissioned reactors while the rest 120 million euro will go for energy efficiency and saving of energy resources.
Source: Standart (21.05.2010)

Bulgaria gas tariffs could go up by over 15% Natural gas prices in Bulgaria will increase by more than 15%, said Angel Semerdjiev, chairman of the State Energy and Water Regulatory Commission (SEWRC). He confirmed there would be a gas spike July but the price rise is still being hammered out. Semerdjiev grounded the upcoming hike in gas tariffs on the rising US dollar against the euro. He said that the higher gas rates are unlikely to translate into an increase in heating tariffs. A week ago Semerdjiev expected gas prices will go up by between 10 and 15% in real terms. The SEWRC is awaiting the gas hike proposal from state-run Bulgargaz. Gas tariffs have already been lifted twice this year, with the latest revision in April, when they were revised upwards by 5.88%. The SEWRC approved a 10.88% hike, cutting the original proposal of 24%, but the Ministry of Energy trimmed that to 5%. A source close to Bulgargaz said this time the company will seek a spike of more than 34%.
Source: Dnevnik (21.05.2010)

It is not acceptable for a monopoly to report a minimal profit, said Minister of Economy Traicho Traykov, concerning the dismissal of the head of LB Bulgaricum Hristo Yungarev. State-owned company exports yogurt starter and holds 40% of the markets in Japan and South Korea. To realize a minimum profit on these huge markets is unacceptable and we took measures to improve the company, said Traykov. The project Belene NPP will depend on the market, but without a quality investor it has no future. A good thing is that the contest to choose a financial adviser, which will help to make a fair decision on the future of the NPP, is close to completion. About the new prices of electricity, gas and heating, Traykov said the watchdog must make decisions transparently and according to the methodology. Today Bulgargaz will announce the formula used for calculating the price of gas for the domestic market.
Source: Standart (07.06.2010)

Kozloduy Functions till 2049 At the energy forum near Varna, at the Bulgarian Black Sea coast, after the presentation of Emil Tomov from Risk Engineering, it emerged that Kozloduy NPP may be allowed to function till 2049. The fifth and fourth units of the nuclear power plant are licensed to operate till 2017 and 2019. After this time, however, the NPP is very likely to ask the Nuclear Regulatory Agency for licence extension. If the extension is for 15 years, the two units will work till 2032 and 2034. After the expiry the licensing could be theoretically prolonged for other 15 years. The licence extension, especially for the first 15 years, will hardly be a problem as long as Kozloduy proves the units are safe, according to experts from the sector.
Source: Standart (11.06.2010)

PM Borissov: Bulgarians Are no Fools on "Belene" Bulgaria is not going to throw money away on energy projects, transpired from the words of PM Boyko Borissov. "First the cabinet needs an answer how much would cost the building of "Belene" NPP, how long it will take the investment to pay back and to whom Bulgaria would sale the electricity, produced by the nuke. When we have the answers to all these questions, then we will decide to say "yes" or "no" to the project," PM Borissov stated. To his words if Bulgaria approves the realization of such projects "it turns out the Bulgarians are fools and are paying without asking for what". According to Bulgaria's premier the official position on Burgas-Alexandroupolis pipeline is the most beneficial for Bulgaria. Burgas district doesn't want the pipeline, PM Borissov stated. To his words the project won't pass successfully the assessment regarding environment requirements and the people from the city of Burgas and the region does not want the pipe to pass through their district. PM Borissov added that the project is not profitable for Bulgaria and besides there are not sufficient funds in the budget to support the project. Commenting on the article in Forbs magazine reading that Bulgaria's withdrawal from Bourgas-Alexandroupolis pipeline project and the standstill position the country has assumed on Belene NPP could be perceived as a tilt from Moscow to Washington, Borissov stated that he did not see this as a tilt. He was explicit that Bulgaria was on the right path. "We have normal, pragmatic relations with Russia. Bulgaria is a Euro-Atlantic country and has decided to make this tilt the moment it left the Eastern Bloc led by the Soviet Union and chose to join NATO and the European Union," the Prime Minister said. In lines with the future of the two projects, Russia's Ambassador to Bulgaria, Yuri Isakov stated that Russia completely understood and respected Bulgaria's stands. "It is true, the topic is delicate and without the 100% certainty that Bourgas-Alexandroupolis would be environmentally safe, it would be insensible to start the project," the Russian Ambassador said. He added, however, that he always believed the Bulgarian-Russian energy projects could be realized a bit more dynamically. It emerged from his words he was sure the projects would be implemented, which, to Isakov, would give Bulgaria a new quality in geo-political standing. The Russian Komersant wrote that Bulgaria would have to pay a billion euro penalties if it withdrew completely from Belene NPP project.
Source: Standart (16.06.2010)

Gazprom Courting Bulgaria’s Neighbors Over South Stream Gazprom and Romania have started negotiations over the possible participation of Bulgaria’s northern neighbor in the South Stream gas pipeline project, as concerning the pipeline’s passing through Romanian territory. This has become clear from a statement of Russia’s gas giant Gazprom, who says it was highly possible the pipeline to circumvent Bulgaria and pass through Romania. The maneuver started a year ago when Bucharest first declared its desire to join in the project, but the Russians have so far maintained that no negotiations between Moscow and Bucharest have been going on behind Sofia’s back. Gazprom CEO Alexey Miller and Romania’s economy minister Adrian Videanu had a working meeting in Moscow, yesterday, at which they opened a discussion on the options for the pipeline’s circumventing Bulgaria. The heads of Romania’s gas companies Romgaz and Transgaz also took part in the meeting. Vdeanu and Miller agreed to continue the talks this autumn, when the latter is scheduled to pay a working visit to Bucharest.
Source: Standart (17.06.2010)

SEWRC proposes some 30% increase in natural gas prices A 29.64% price increase in natural gas prices as of July 1 has been proposed by the State Energy and Water Regulatory Commission (SEWRC). Thus, the blue fuel will be hiked by BGN 129 per 1,000 cu m and will cost BGN 564.30 per 1,000 cu m, VAT excluded. In its proposal, SEWRC has cut down the trade surplus of the state-run Bulgargaz, without specifying by how much. Under the ordinance, the trade surplus payable to the company is up to 2%. The new prices do not include the non-received proceeds of the company for the first three months of 2010 which is in violation of the ordinance on price formation, approved at the end of last year. According to data of Bulgargaz, its non-received proceeds for the period amount to some BGN 28.3 mln. On the Day of Energy, SEWRC’s Chairman, Angel Semerdjiev, said that additional mechanisms will be sought for reducing the shocking price increase of natural gas to about 24-25%. He added that after mid-July, some 10% of the total gas consumption in the country will be secured by supplies from the gas depository near Chiren. If SEWRC’s proposal is approved, the price of heating in Bulgaria will have to increase by 20% on average, experts calculate. Semerdjiev promised a 15% price hike for cities like Sofia and Plovdiv. According to him, higher heating prices could be partially offset by a jump in the price of electricity generated by heating utilities in the country. SEWRC is expected to propose a 30-40% price increase in cogeneration energy prices.
Source: Class (20.06.2010)

The state owned company Bulgarian Energy Holding (BEH), which by order of the Prime Minister Boyko Borisov will be closed by the end of June, concluded a contract on Friday with PR company to promote its business. The contract is signed with the unknown company Brand PR. It is for about six months, amounting to BGN 60 thousand. The contract was concluded, without public order. The holding invited by letter several PR companies to participate in a contest organized under the internal rules of BEH. Mila Popova, manager of Prime Time, said she was very surprised by the call because the holding will be closed, but sent an offer. The decision the holding to pay for PR was taken in a very strange way. On June 4 it was held a board of directors with a single participant - the executive director Maya Hristova.
Source: Sega (21.06.2010)

Extra high salaries for the employees of NEC, outsourcing and high profits - that lies behind the expensive power tariffs. This became clear from a report of the State Energy and Water Regulatory Commission, signed by its President Angel Semerdjiev. All analyses indicate that the National Electricity Company is leader in salaries not only among government, but also among private companies. Also, the report includes a table showing the prices for electricity transmission for 2008 in the region. It is clear that in Bulgaria it was the highest - 44 euro cents, while in Romania - 36, Serbia - 31, Turkey - 22 and 17 euro cents in Macedonia. The analysis of the regulator indicates that there was a permanent trend of increase of prices of access and transmissions of electricity between 2007 and 2009.
Source: Standart (22.06.2010)

Moscow Twists Sofia's Hands over South Stream Moscow is again trying to twist Sofia's hands over the joint-Bulgarian-Russian energy projects. In an interview with Moscow Times, Gazprom CEO Alexey Miller said that the South Stream pipeline might circumvent Bulgaria. The route of the pipeline may be altered and Bulgaria may be excluded from the initial layout, following Russia's disappointment with the delayed realization of Bourgas-Alexandroupolis and NPP Belene joint energy projects. Miller's comments come at a time when Bulgaria expects the international environmental risk assessment for Bourgas-Alexandroupolis pipeline and a consultant is being sought for Belene NPP. Instead of getting out from the Black Sea near Varna, Bulgaria, South Stream pipe could be constructed via Romania. He informed that the opportunity for South Stream to reach Serbia via Romania will be studied and the Bulgarian territories which are currently included in the plan for the pipeline construction will be excluded from the project. "Bucharest offers us a wide range of cooperation opportunities in the sphere of energy production," Miller said. To his words, the research on the implementability of the project will be ready by three months the longest.
Source: Standart (22.06.2010)

Bulgaria and Romania Are No Competitors for South Stream "It is possible for Romania to join in the South Stream pipeline project, but this does not necessarily mean that Bulgaria will drop out," Gazprom Deputy CEO Alexander Medvedev said in Moscow. "Following a proposal of the Romanian party, we will first make technical-economic assessment, which will help the concerned parties determine if Romania's participation in the project is economically reasonable, and only after that will we proceed to make technical-economic grounding of Romania's involvement in the deal. "Some geological factors should also be taken into consideration and therefore it is unreasonable to fuel rivalry between Bulgaria and Romania over their participation in the project," Medvedev said.
Source: Standart (23.06.2010)

The state gas company Bulgargaz may use a loan to ensure the payments for blue fuel supplies to Gazprom. The option of obtaining a credit has been proposed to the Ministry of Economy, Energy and Tourism, said the executive director of Bulgargaz Dimitar Gogov. He took part in public discussion of the gas tariff by July 1. Gogov explained that Bulgargaz has offered two options for obtaining the loan. The first one is drawing on a bank loan, which according to the head of Bulgargaz will take a long time since the procedure must be conducted under the Public Procurement Act. Alternatively, a credit may be obtained from the Bulgarian Energy Holding (BEH) or its successor.
Source: Monitor (24.06.2010)

Bulgaria to Pay $400 For Russian Gas A hike of gas price expects Bulgaria in the beginning of next year. As of January 1, 2011 Bulgaria will have to pay to Russia $400 per 1,000 cubic meters gas delivery, Dimitar Gogov - Executive Director of Bulgargaz announced. Current price is 338 US dollars. The increase has been provided in the annex signed three years ago by the minister of energy at that time Roumen Ovcharov, experts explained. According to the annex the price of gas Bulgaria buys from Russia on the contract for transit will be rising gradually till the end of 2012 while it reaches the market price. Under this contract Bulgaria is buying about 1.4 billion gas or about 40% of its yearly consumption. A hike of natural gas price is not expected in the last quarter of 2010, Dimitar Gogov foresaw before the State Commission for Energy and Water Regulation.
Source: Standart (24.06.2010)

Bulgaria to Double Nuclear Energy in 2030 The project of the ministry of economy on Bulgaria's energy strategy envisages a twofold increase of the power produced in NPPs. According to the project, the generated power in nuclear reactors in 2030 should reach 30 terawatt hours a year. Presently it stands at 14,7 terawatt hours a year and it should be kept till 2015. From 2020, the strategy envisages an increase to 22,3 terawatt hours a year which means that in the following 10 years at least one 1000-megawatt reactor should start operating. The strategy does not tell if this will happen through Belene NPP or new reactors in Kozloduy nuke.
Source: Standart (25.06.2010)

Prices of natural gas to increase by almost 25% Natural gas price will increase by 24.63% as of July 1, the State Energy and Water Regulatory Commission (SEWRC) decided yesterday. Thus, the blue fuel will rise from BGN 435.30 per 1,000 cu m, excluding VAT, to BGN 542.50 30 per 1,000 cu. m. The price hike is a shocking one, compared to the current gas price. The increase would have been by 18.39%, if the price of natural gas had not been decreased with the permission of Economy Minister Traicho Traikov in the second quarter of 2010. SEWRC does not include in the price the company's non-received proceeds for the first two quarters, as per the requirement of the ordinance on price formation. According to data of Bulgargaz, these amount to some BGN 28 mln. Yesterday, company representatives stated that Bulgargaz would continue to operate at a loss, regardless of the price increase. They did not rule out the possibility of appealing against SEWRC's decision after getting officially acquainted with the regulator's motives. Heating energy in Bulgaria is expected to be hiked by some 15% as a result of the shocking price rise of natural gas, experts calculated. In addition to central heating and hot water prices, the increase will also directly affect the products of the chemical and food industry, the heavy industry and part of the transport sector.
Source: Class (29.06.2010)

We have to forget about exports after the latest hike of the natural gas price. The international price of the ammonium nitrate from today is USD 180, said Prof. Hristo Petrov, CEO of Agropolichim in Devnya. In case of 24.6 percent increase of the fuel, the price is USD 363. Agropolichim sells on the domestic market the fertilizer at BGN 300 per ton. Now the new prices are calculated after the increase of the basic raw material, which forms 70% of the production costs. We estimate whether there will be outflow of orders, how the hike would be accept and then we will run the production line for ammonium nitrate. By July 15 the capital overhaul would be finished, but whether the plant will work is questionable, Mr. Petrov said.
Source: Standart (30.06.2010)

Melrose Resources to invest $65 mln near Kaliakra “Melrose Resources plans to invest $65 mln in Bulgaria by the end of 2010,” David Archer, Executive Director of the Scottish oil and gas explorer, said to Klassa yesterday. He pointed out that that the company has, so far, been supplying about 10% of the natural gas needed by our country. Extraction from the new gas deposit near Kaliakra is expected to begin by the end of this year. The company’s investments will benefit Bulgaria’s budget by some $30 mln via the payment of VAT and other taxes. Melrose has already held negotiations with the Bulgarian Government for the setting up of a gas depository on the spot of the gas deposit near the Galata Cape near Varna. Melrose plans to invest $35 mln in this venture. Since the Scots are not licensed to store natural gas, they cannot be legal concessionaires of the future depository. According to the Government’s plans, about 250 million cu m of gas should be stored at Galata after 2010, projecting to raise the depository’s storage capacity to 800 million cu m in the future. Meanwhile, during the visit of Bulgarian President Georgi Parvanov to Azerbaijan yesterday, he discussed, in a face-to-face conversation with his counterpart Ilham Aliyev, the project for the delivery of compressed gas from Azerbaijan via Georgia and the Black Sea to Bulgaria, and the readiness of both sides to implement it was confirmed. The two heads of state stated there were other options for Bulgaria to receive blue fuel from Azerbaijan and the aim was to begin deliveries in 2011. "By the middle of July, a joint working group from both countries will issue a statement on the economic parameters of the project”, explained to Klassa daily CEO of Bulgartransgaz, Ivan Drenovichki. President Ilham Aliyev supported the proposal of the Bulgarian Head of State for a tripartite meeting between the gas companies of Bulgaria, Turkey and Azerbaijan, where the specific parameters of cooperation will have to be agreed. Georgi Parvanov and Ilham Aliyev confirmed as a priority the Nabucco project for the diversification of gas deliveries to Europe and the crucial role of Azerbaijan as one of the main gas suppliers for Nabucco.
Source: Class (01.07.2010)

Bulgaria Pays Twice More for Russian Natural Gas than Germany Bulgaria pays twice more for the natural gas it buys from Russia than Germany, a report of the East European Gas Analysis consulting company shows. According to the publications on the company's website, in the second quarter of 2010 Germany paid $150-155 for 1,000 cubic meters of Russian natural gas, while Bulgaria paid $295. The situation could have been just the opposite, if former economy minister Rumen Ovcharov had not signed an additional agreement in December 2006, under which the price of the natural gas that Bulgaria received from Russia soared from $83 to $295 per 1,000 cubic meters. At the same time, the transit fees that Bulgaria receives for the transportation of Russian natural gas through its territory are the lowest in the world.
Source: Standart (05.07.2010)

Borissov: My Cabinet's Top Grades Depend on Talks with Putin "If we manage to convince the Russians to agree on our terms, I will give myself top grades. Because at the moment the prices we have agreed upon and the gas delivery are not as they should be and we will do what we can to lower the price. If I am to grade the achievements of the Cabinet so far I would put it the second best mark," said Bulgaria's Prime Minister, Boyko Borissov a year after the general elections. On July 5, 2009 GERB won 42.3% of the Bulgarians' trust and thus earned 116 seats in Parliament. To Borissov's words, the Government's successes are measured by the actions of the Interior Ministry and the halt in the vicious real estates barter practices. "We stopped the estates swapping, returned the EU funds, detected kidnappings and highway robberies, we busted the almost official plundering of state companies," Borissov commented on the work of the Government. He added that he enjoyed wonderful dialogism with Russia's PM, Vladimir Putin. "He understands me better than the Bulgarian opposition politicians do. For this reason the energy projects will be discussed by both countries and if we reach an agreement it would be at the expense of no one. The important thing is that at the moment we set the pace," Borissov pointed out.
Source: Standart (05.07.2010)

Bulgaria Negotiates Cheaper Gas for South Stream and NPP Belene Bulgaria will receive cheaper natural gas from Russia in exchange for the acceleration of the joint energy projects South Stream and NPP Belene. This became clear after yesterday’s meeting of Bulgaria’s PM Boyko Borissov with Russia’s first Deputy PM Viktor Zubkov. During the meeting Borissov was surprised to learn that the price of the natural gas from Russia increases by about $200 per 1,000 cubic meters by the time it reaches the final consumer. "Where is this money draining? I smell a rat like that with the local electricity distribution companies!” Borissov was seething with indignation. After the meeting, he immediately ordered Bulgargaz chief Dimitar Gogov to find out who pockets the difference in the price of the Russian natural gas.“I will order the state security agency to investigate this corrupt scheme,” he added. It is quite realistic that in the next trimester of 2010 the price of natural gas in Bulgaria will go down, stated PM Borissov. In his turn, Mr. Zubkov personally committed himself to pass on to Russia’s PM Putin the wish of his Bulgarian counterpart. There is no war between the PMs of Bulgaria and Russia, PM Borissov and Mr. Zubkov were explicit. Road maps of South Stream project and Belene NPP has been worked out, it transpired from the statements of PM Borissov and Mr. Zubkov. The road map for Belene NPP shows that foreign investors will be involved in the project. By September 2010, the first unit of Belene will be completed, for which Bulgaria will have to pay 280m euro, otherwise Bulgaria could be sued to pay damages. "I come to terms with the Russian side more easily than with my Bulgarian opponents,” PM Borissov stated.
Source: Standart (07.07.2010)

Borissov Slashes Gas Prices by $200 The consumer price of natural gas in Bulgaria may fall by $200. The good news came after the meeting of PM Borisssov’s team with the representatives of his Russian counterpart Vladimir Putin. During the meeting, Borissov was surprised to learn that Moscow sends natural gas to Sofia at a price of $339 per 1,000 cubic meters, but the intermediary companies inflate its consumer price to $576 per 1,000 cubic meters. "Where has this money been draining? I smell a rat!” Borissov said indignantly. After the meeting, he ordered the State Agency for National Security to probe the artificially inflated prices. Russia’s Deputy PM Zubkov promised Borissov to pass his request for lower final price of the natural gas to his Russian counterpart Putin. “Bulgarians may start using cheaper gas from October 1,” Borissov said.
Source: Standart (07.07.2010)

US Ambassador James Warlick: Bulgaria's agreements with Gazprom should be public US ambassador in Sofia James Warlick said that the gas supply agreements between the Bulgarian government and Russia’s Gazprom should be made public. A day after the visit of Russia's deputy PM Viktor Zubkov and Gazprom Deputy Chief Alexander Medvedev to Sofia, who came to discuss the amended agreement for supply of Russian natural gas to Bulgaria, US Ambassador in Sofia James Warlick held talks with Bulgaria’s Economy and Energy Minister Traycho Traykov. "I understand that the Bulgarian people want to know who inflates the consumer price of the Russian natural gas with more than 30%, but this cannot happen as long as the gas supply agreements are confidential,' Mr. Warlick said. On his part, Minister Traykov assured the American ambassador that he will insist on the new agreements being made public. Mr. Warlick emphasized once again that the diversification of the energy supplies to Bulgaria is of fundamental importance to the security of the whole region. "Our position on the realization of the NPP Belene project has not changed," Mr. Traykov said answering a question of the US ambassador. After the Warlick-Traykov meeting, PM Boyko Borissov came up with a statement, in which he emphasized the importance of Bulgaria’s energy independence. The Prime Minister also reiterated that the state currently does not have enough free capital to finance the construction of the Belene power plant’s first reactor. "We are seeking a European investor for the realization of this project," he added. Meanwhile, it became clear that Sofia and Moscow will sign an agreement on the realization of the South Stream project on July 16.
Source: Standart (08.07.2010)

Serbia to Pay Belene NPP Reactor “The nuclear reactor of Unit 1 of Belene NPP may be paid by Serbia. The reactor will be ready in the middle of September 2010 and Bulgaria will have to pay 280 million euro for it,” stated Bulgaria’s PM Borissov on Tuesday after his meeting with Russia’s First Deputy PM Viktor Zubkov. Bulgaria has already paid 300 million euro for the reactor but rest 280 million euro have not been transferred in the budget. "The National Electric Company (NEC) does not have the needed 280 million euro and they will not be paid if we do not find an investor. We are working on the project with the clear view about that and if it is needed the financial relations with the Russian partners will be structured,” stated Bulgaria’s Minister of Energy and Economy Traykov. At the same time, PM Borissov announced he was waiting for an answer from Serbia’s PM Boris Tadic regarding his country’s participation in the project. PM Borissov informed that the price of Belene NPP would not exceed 7 billion euro. Yesterday morning, in an interview for the bTV, PM Borissov said it would be very good if PM Tadic gave a positive answer regarding Serbia entering Belene NPP project. This will, in practice, guarantee a market for the produced in Belene electricity, something Bulgaria’s cabinet tries to ensure.
Source: Standart (09.07.2010)

Bulgaria’s alternative gas routes remain only on paper Bulgaria does not have an alternative to the supply of large volumes of gas as most projects for the creation of new routes are still only on paper, energy minister Traycho Traykov said. His comment comes after prime minister Boyko Borissov said earlier this week that Bulgaria will participate in the construction of the Italian-Russian gas pipeline South Stream and connect to it its existing gas transmission grid from Romania to Greece and Turkey. “We are working to diversify gas deliveries. We signed an agreement with Turkey on its liquefied natural gas (LNG) terminal. [Bulgaria’s minister in charge of EU funds] Tomislav Donchev is currently considering a project for an LNG terminal in Bourgas […] In other words, we are working on all issues regarding diversification,” Borissov told bTV channel on Thursday. Alternative gas supply routes are a benchmark in Bulgaria’s Draft Energy Strategy unveiled last week. According to plans, by 2013, Bulgaria should construct an LNG terminal on the Greek Aegean shores and develop a project for compressed natural gas deliveries from Azerbaijan across the Black Sea for which the two countries have reached an agreement in principal. The other alternative routes outlined in the strategy include gas links with Romania, Greece, Serbia and Turkey. The projects with Greece and Romania are in the most advanced stage, having secured financing from the European energy recovery package. Around 17 billion cubic metres (cu m) of gas currently passes through Bulgaria’s transit grid. Plans call for the same volume flowing through the pipes once they have been connected to South Stream. The total amount of gas that should be transited through Bulgaria through South Stream is 63 billion cu m.
Source: Dnevnik (09.07.2010)

Macedonia Wants Share in NPP Belene Reportedly, Skopje has been probing for opportunities to get a minority stake in Bulgaria's NPP Belene. Macedonia is the second Balkan country to show interest in the project after Serbia, but it has not announced its intentions, yet. A few countries in the Balkan region have shown interest in the construction of Bulgaria's second nuclear power plant. It's good if our neighbors join in, as they will provide part of the funds necessary to build the plan, as well as potential markets for the electricity that it will generate," MPs said. On Friday Serbia's President Boris Tadic arrives on an official visit to Bulgaria. One of the main topics he will discuss with his Bulgarian counterpart, Boyko Borissov will be Belgrade's possible participation in Belene project. Serbia's possible participation as an investor in the project has been rumoured for about two months. Such an option has been defined as very beneficial for the Serbian side by both politicians and scientists because it would provide Serbia with electricity for dozens of years ahead purchased from an EU member state. Meanwhile Bulgaria's Minister of Energy and Economy, Traycho Traykov stated there was not a hundred percent certainty on Belene NPP construction being carried out. If the project is abandoned, Bulgaria will avail of the opportunity to build new units in Kozloduy NPP.
Source: Standart (13.07.2010)

Big sharks eye oil drilling projects in Bulgaria Leading global oil and gas exploration companies are interested in deep-water crude oil exploration and extraction concession at Bulgaria’s Black Sea shores. The procedure for drilling at the almost 6,940 square metres site, north of Rezovo, was launched by the Bulgarian government back in 2009. Participation papers could be purchased by the end of this month. Interest in drilling at the site has been expressed by France’s Total, US-based Anadarko Petroleum, and other big players, Deloitte Bulgaria executive director Ilian Vassilev told. Deloitte has been hired by the government to advise it on attracting investors into projects exploring Bulgaria’s Black Sea waters. The winner will receive a five-year drilling and exploration permit and will be expected to pump up to USD 200 million into the project. If it discovers an oil field and registers the discovery, it will get an extraction concession contract. “No such deep-water oil exploration project has ever been done in Bulgaria so far,” Ilian Vassilev told. Up till now, Bulgaria and Romania have only studied shallow Black Sea waters, unlike Turkey, which is studying as many as three potential deep-water fields.
Source: Dnevnik (14.07.2010)

Brussels to Compensate Sofia with EUR 150 M for Decommissioned Nuclear Reactors ECOFIN has decided to compensate Sofia with a total of 150 million euros for decommissioning power reactors one to four of its NPP Kozloduy. This is part of the extra compensation that Bulgaria has been entitled to receive for the early shutdown of its old nuclear reactors. Earlier this year, the European Parliament and the European Commission approved a proposal, under which Bulgaria was to receive 300 million euros by 2013. The money should be used to increase the security and efficiency of Bulgaria's energy resources.
Source: Standart (14.07.2010)

US Companies to Probe for Natural Gas in Bulgaria The US Company Chevron has showed interest to probe for and explore natural gas deposits in Bulgaria. This has emerged from a statement of John W. McDonald, Vice President and Chief Technology Officer of Chevron Corporation. According to US ambassador in Sofia James Warlick, the deposits of natural gas in Northeastern Bulgaria, close to the Romanian border, amount to over 25 billion cubic meters. Taking into consideration Warlick's words, the Chevron management has requested permission from the Bulgarian government to start exploring the deposits' potential. Talks have also been held with PM Boyko Borissov. "Chevron's offer presents a real option for diversification of Bulgaria's energy supplies," Mr. Warlick made it a point. Chevron's preliminary studies show that the deposit lies at two or four km under the ground.
Source: Standart (14.07.2010)

Price of Russian Gas far Bulgaria May Drop to $300 The price of the natural gas supplied to Bulgaria from Russia may drop to less then $300 for 1,000 cubic meters, which is close to the price, at which Germany buys Russian natural gas. The news was broken after a news conference with the participation of Bulgaria’s PM Boyko Borissov, Angel Semerdzhiev, chairman of the State Energy and Water Regulatory Commission, and Bulgargaz chief Dimitar Gogov. “There will be tough negotiations over the next few days, and we still have to overcome the negative consequences of our predecessors’ unprofitable deals,” Borissov said. Borissov’s team are trying to lower the consumer price of natural gas by 10 or 15%. The Expansion of the gas transportation network is a prerequisite for lowering the price of natural gas, as at present only 12 or 15 per cent of the Bulgarian households use natural gas for heating or cooking. The State Energy and Water Regulatory Commission will check out of the intermediary companies properly maintain the gas transportation network.
Source: Standart (15.07.2010)

Texas-based firm to vie against Chevron for shale gas US company Integrity Towers Inc will compete with Chevron in two shale gas fields in Bulgaria, the Ministry of Economy said. The announcement comes just a day after US ambassador to Bulgaria James Warlick presented a project by US integrated energy company Chevron Corporation to extract shale gas in northeastern Bulgaria. The company has submitted an application with the economy ministry for a shale gas exploration permit for the site, where it expects to discover 25 billion cubic metres (cu m) of gas through drilling at a depth of around 4000 – 5000 metres. According to ministry data, Chevron is interested in exploring for natural gas in shale deposits at two sites, whereas Integrity Towers wants to drill at five northeastern sites. The competitive procedure will be launched following coordination with the Ministry of Environment. At a meeting with his Canadian counterpart Peter Van Loan, Traykov also invited Canadian companies to explore for gas in Bulgaria. Direct Petroleum Bulgaria was the first to register a geological discovery of shale gas through drilling into rock complexes and industrial extraction could be expected within five to ten years, according to the ministry.
Source: Dnevnik (15.07.2010)

Budget 2011 to Provide Funds for South Stream The money for the construction of Bulgaria’s share of the South Stream gas pipeline has already been provided in next year’s budget, finance minister Simeon Djankov said. The minister also highlighted the most important achievements after the Bulgarian-Russian talks – the consensus on the South Stream project and the elimination of the intermediary companies. We are also working to diversify the gas supplies to Bulgaria so as not to be 100% dependent on Russia,” Djankov added.“In a week or so we will have talks with Greek ministers over the construction of natural gas links between our two countries. Bulgaria will get the reactor for NPP Belene, but will not pay 280 million euro in cash, as it is provided in the agreement. Rather, Sofia will seek foreign investors to finance the project.
Source: Standart (19.07.2010)

South Stream’s roadmap still does not specify route Bulgaria and Russia on Friday put pen to the roadmap for the construction of the South Stream gas pipeline project, which will pump gas to Italy and Austria. The document sketches out timeframes and steps for preparing the pre-project study and the creation of a joint company to develop the pipeline, said Bulgarian economy minister Traycho Traykov. The Bulgarian portion of the facility will take in approximately USD 840 million. The project will have a capacity of 63 billion cubic metres and will be joined by Bulgaria’s existing gas transmission infrastructure. Up till now, up to 17 billion cu m of gas has crossed Bulgaria’s territory from Greece to Turkey. The sole existing gas pipeline using Bulgaria’s grid now comes from Russia through Ukraine, Moldova and Romania. Once the South Stream has been constructed, Bulgaria will preserve its transmission grid capacity and will continue to transport gas for the same countries. A new route will be developed to connect Serbia and Hungary. It has not been decided yet whether transit through Ukraine will be suspended. Two weeks ago, Kiev proposed using the existing gas transit infrastructure instead of developing South Stream, a scenario that contradicts Russian major Gazprom’s plans to diversify its routes. The South Stream roadmap still does not elaborate the route of the project, nor does it specify the total cost. “It’s too early to think who and how will finance [the project],” said Traykov, adding that the Bulgarian section of the project could be completed by 2015.
Source: Dnevnik (19.07.2010)

Bulgarian govt tells Russian gas fairy tales After two days of negotiations with Russia in the Black Sea city of Varna, the Bulgarian government bragged about the oral agreement it reached for a reduction in the natural gas price and for removing middlemen between state-run gas supplier Bulgargaz and Russian major Gazprom. HowAlthough, Russian company Gazprom Export remains between the Bulgarian and the Russian companies, and talks on the precise price cut is yet to be negotiated, Bulgarian prime minister Boyko Borissov and energy minister Traycho Traykov are pleased with the outcome of the talks. “We still haven’t reached the final version about prices,” said Bulgarian finance minister Simeon Djankov. Bulgargaz was calling for a drop of at least 15% but unconfirmed reports claim Russia has only agreed to lop off between 3% and 7%. Djankov did not deny there has been such a proposal but said the truth lies somewhere in the middle. He noted that global markets play a pivotal role in Gazprom’s gas formation. Gazprom vice-president Alexander Medvedev said the company has not made a rather big compromise. Sofia and Moscow will continue to negotiate and are due to sign ten-year gas delivery contracts by the middle of 2011. In Varna, Bulgaria and Russia sealed a roadmap for the South Stream gas pipeline project, which will pump gas to Italy and Austria. While Bulgaria’s existing has transmission grid will be utilised for the project, it is unknown whether the country will continue to get gas through the pipeline coming from Ukraine.Bulgaria is going to stick to the 2,000 MW Belene nuclear power plant project but it faces going to court with the Russian side unless it manages to find investors, Djankov said. He reiterated government plans to sink no more money into the scheme and not pay the EUR 280 million it owes Russian contractor AtomStroyExport for building the first reactor. Premier Borissov said a European investor for the power station designed to offset the loss in generating capacity at Bulgaria’s Kozloduy nuclear power facility following the premature closure of two pairs of 440 MW reactors should be secured by mid-September.
Source: Dnevnik (19.07.2010)

Bulgaria's PM: No commissions in the construction of Gorna Arda "No consultants and commissions, please!" This was the warning of Bulgaria's PM Boyko Borissov before the signing of a shareholders' agreement between Austria's energy giant EVN and Bulgaria's energy utility NEC over the realization of the Gorna Arda hydro energy project. Borissov arrived on a two-day official visit in Vienna via Rome. "I told my Austrian partners that we'll keep a close eye on the realization of the project. "Austria is the biggest investor for Bulgaria and I hope we all will be working by the rules, as they do in Austria," PM Borissov said. He will insist Bulgarian companies to participate in the construction of "Gorna Arda" as this will ensure jobs to about 5 thousand workers. The first sod of the hydro-energy complex most probably will be done in the beginning of 2012, Burkhard Hofer - executive director of EVN announced. EVN and Bulgaria's National Electric Company (NEK) signed the contract on the energy facility in the Bulgarian embassy in Vienna. According to the contract EVN will own 70% of the energy company under the same name and NEK will own the rest 30%. In Vienna the PM talked with Austria's President, Heinz Fischer about issues of bilateral interest.The document signed between the Bulgarian National Electrical Company and EVN is a necessary base for the ratification of the memorandum for cooperation between Bulgaria and the province of Lower Austria. The memorandum specifies the commitments the two countries would take on the implementation of the project for the construction of hydro-energy complex. The document was signed by Borissov and the Prime Minister of Lower Austria, Dr Erwin Proll. The document was signed with the highest state official of Lower Austria because the central seat of EVN as well as the larger part of the company's property is situated in that territory.
Source: Standart (20.07.2010)

EVN and NEC to build hydropower plants of 170 MW capacity The National Electricity Company (NEK) and Austrian EVN will apply to the European Commission (EC) in order to be granted subsidies under the Regional Development Programme. These grants will fund infrastructure works linked to the construction of the Gorna Arda hydropower cascade, said yesterday Werner Casagrande, Head of the EVN project in the Rhodope Mountains. A day earlier, a joint-stock agreement was signed for the construction and operation of the cascade between NEK and EVN. The event was attended by Prime Minister Boyko Borissov and the delegation headed by him in Vienna. At that time, the Prime Minister commented that construction should begin by the beginning of 2012. The construction of the cascade will not cost more than BGN 500 mln, stated Energy Minister, Traicho Traikov. By holding a 70% stake, EVN remains the only project partner of NEK. Werner Casagrande added that EU subsidies, for which NEK and EVN will apply, will be used for the construction of roads and infrastructure in the region. Currently, the two companies are discussing changes to the technical project for Gorna Arda since it was drafted in the 1980's. The option now is to discuss the construction of two dams - Madan and Ardino - but not three dams as expected. This comes as a result of environmental problems which could easily be inflicted by the construction of the dam of Sarnitsa. Two more hydropower plants (HPP) on the cascade are expected to be built – the HPP Beli Izvor (White Spring) at the dam of Madan and HPP Kitnitsa, to be located downstream from the dam of Ardino. The total capacity of the two hydroelectric power stations will be about 170 MW.
Source: Class (21.07.2010)

Bulgaria Wants to Be 1st Operational Link in Nabucco Pipeline The establishing of the Bulgaria-Turkey natural gas pipeline should become the first functioning part of the EU project for the Nabucco pipeline, believes Bulgaria’s Economy Minister Traikov. Traikov met Tuesday in Vienna with representatives of the senior management of the Austrian company OMV AG, which is one of the partners in the project, and with the CEO of the international project company Nabucco Gas Pipeline International, Reinhard Mitschek. The Bulgarian Minister of Economy, Energy, and Tourism is in Vienna as part of a delegation led by Bulgarian PM Boyko Borisov. In his talks with OMV and the Nabucco company, Traikov has suggested boosting the efforts to construct a natural gas pipeline connection between Bulgaria and Turkey, which can later become a part of the entire Nabucco pipeline. “The realization of this pipeline link will practically turn into a start of the project which is going to provide Bulgaria and the EU as a whole with an access to the gas resources of the Caspian Region and the Middle East,” Traikov said. The Austrian experts have presented to him the work of the Central European Gas Hub (CEGH), which is 80% owned by OMV, and discussed opportunities to set up a similar natural gas trade platform in Bulgaria.
Source: Darik Radio (21.07.2010)

Bulgaria’s Cabinet Supports “Nabucco” Bulgaria’s Council of Ministers has decided to approve the agreement on “Nabucco” gas pipeline project. Two months ago in Turkey’s capital Ankara an inter-governmental agreement was signed between the countries, which will take part in the European project - Bulgaria, Austria, Hungary, Romania and Turkey. With its decision Bulgaria’s government also supports the agreement between “Nabucco Pipeline Bulgaria” Company and “Nabucco Pipeline International” Company. The purpose of such agreements between companies from different countries is to work out the details of the project.
Source: Standart (22.07.2010)

Schistose gas extraction to cost up to $270 per 1,000 cu m Operating costs for the extraction of schistose gas are substantially greater than the costs for the conventional extraction of natural gas, told Klassa experts familiar with the technology. Costs vary between $250 and $270 per 1,000 cu m of gas. Currently, Russian gas to Bulgaria is delivered at a price of nearly $339 per 1000 cu m, including transit costs. As a result, schistose gas will be way more expensive for consumers. The price of schistose gas is substantially greater because of higher production costs, told Klassa Valentin Kanev, Chairman of the Balkan and Black Sea Petroleum Association. American Chevron wants to extract schistose gas in Bulgaria. According to their estimates, the country has around 25 billion cu m of schistose gas. Company officials also stated that this type of gas is significantly more expensive than gas extracted in the conventional manner. According to Chevron estimates, gas reserves in the country are located in northeastern Bulgaria, near the border with Romania. Minister of Economy, Energy and Tourism, Traicho Traikov, said that there are at least two companies which want to explore the area for such deposits. According to him, this can bring about a real diversification in gas supplies to the country. He added that merely exploring the deposits would cost hundreds of millions of dollars but it is not certain whether there is any natural gas in the region.
Source: Class (25.07.2010)

Gas prices might drop by 15% as of 1 October Retail gas prices might drop by 15% as of early October this year, Standart Daily reads, quoting an anonymous source from the State Energy and Water Regulatory Commission (SEWRC). The price cut for household consumption will come as a result of the overall reduction by 4% to 7% in the cost of Russian gas deliveries to Bulgaria, agreed earlier this month. Monitor Daily cites PM Boyko Borisov as saying that Sofia will be purchasing Russian gas for no more than USD 300.
Source: Standart (26.07.2010)

Two US Companies Ready to Build NPP Belene Two US companies have shown readiness to acquire a 40% stake in Bulgaria?s NPP Belene project. This became clear from the statement of Prof. Zahari Zahariev, chairman of the federation for friendship with Russia, as quoted by the Bulgarian news agency, BTA. The professor declined to disclose any details, saying that this could be done by Energy Minister Traycho Traykov. Germany’s RWE is also willing to come back to the project, Zahariev went on. To his words, the realization of the project is a matter of political will. According to MP Rumen Petkov, the constriction of NPP Belene will reduce the CO2 emissions by up to 40% and will open job positions for 42,000 people. In addition, when constructed the power plant will bring direct investments to the economy of 2.5 billion euro.
Source: Standart (26.07.2010)

National Electricity Company (NEC) has started to review its investment budget for this year in search of additional BGN 20 million for rehabilitation of main power lines mostly in the ring Burgas-Balchik, announced the executive director of the company Krasimir Parvanov. In recent years it did not build any new kilometer of network, investment costs for repair and maintenance of the distribution network were directed to projects for the construction of Belene NPP and Tsankov Kamak instead of covering activities for the implementation of the basic licensing business of NEC, said Parvanov. The same are the conclusions in the report of the State Energy and Water Regulatory Commission, prepared at the request of the Bulgarian Energy Holding.
Source: mediapool.bg (27.07.2010)

Sofia Municipality has contracted nearly 5-year deferral of the new obligations of Heat Supply-Sofia, announced the Deputy Mayor for Finance Minko Gerdzhikov. Last week, the Sofia Municipal Council took the company with over BGN 510 million debts. Part of them – BGN 214 million had been accumulated before Bulgargaz became part of Bulgarian Energy Holding (BEH), has been already rescheduled to 2017. The new obligations - over BGN 296 million, were accumulated after the end of 2008 and the municipality has negotiated for them 57-month deferral to 2015. The main cause of accumulated debt is low the collection of debts, said Gerdjikov.
Source: Sega (28.07.2010)

Bulgaria invites Greece to partake in the Belene NPP. The Burgas-Alexandroupolis oil pipeline postponed until an environmental impact assessment has been drafted Greece may partake in the construction of Belene NPP (Nuclear Power Plant). The news was released yesterday after a joint meeting of the Bulgarian and Greek Governments in the Boyana Residence. Prime Minister Boyko Borissov said that Bulgaria had invited its southern neighbour to buy a minority stake in our second NPP project. His Greek counterpart, George Papandreous, did not reveal more details about the negotiations. Besides Greece, Serbia was invited to partake in the project as well. Serbian officials are considering the opportunity for participation. They are negotiating with the China Development Bank on the necessary funding for the investment in the NPP. The bank expressed an interest in the project after talks with Petar Shkundrich, Minister of Energy and Mining Industry of Serbia, posted the Ukrainian Kiev Post newspaper. Besides its interest in the Belene NPP, Greece continues to support its request for the construction of the Burgas-Alexandroupolis oil pipeline. “We understand Bulgaria's concerns about environmental problems with respect to the construction of the pipeline and we will wait for the international environmental impact assessment in order for the issue to be decided finally,” said Papandreous. “The document is expected to be ready by February next year,” said Borissov. He added that funds are required for the drafting of the assessment. That is why the Government voted an increase in the capital of the Bulgarian company responsible for the pipeline. Last week, Managers from the Trans-Balkan Pipeline company, which owns the pipeline, said that within few months Bulgaria will remit its contribution of nearly ˆ5 mln to the budget of the company. “The environment is more precious than the project for both Bulgaria and Greece,” stated Borissov. “Bulgarian-Greek relations do not revolve around the pipeline alone. We still have several areas of cooperation," said Papandreous.
Source: Class (28.07.2010)

Melrose Finds New Natural Gas Deposits in Bulgaria Natural gas prices in Bulgaria will go down in the fall of 2010 as a result of extraction from three new deposits discovered by UK-based company Melrose resources. The three new natural gas deposits – Kaliakra, Kavarna, and Karvana East – are located in the very northeast of Bulgaria, in the Black Sea off the Kaliakra Cape. The discovery of the new deposits was announced Wednesday by Bulgaria’s Economy Minister Traicho Traikov together with the CEO of Melrose David Archer and UK Ambassador to Bulgaria Steve Williams. Archer has pointed out that the new deposits are a real commercial discovery, and that the company will start laying pipes for the extracting of the natural gas in August. The price of the natural gas will be negotiated between Melrose and the Bulgarian government. However, the UK company has made it clear that it will be a lot under USD 300 per 1000 cubic meters of gas, which is the price that the Bulgarian government is currently trying to get from Gazprom, the country’s only natural gas supplier. “Our own production will reduce the average price of natural gas in Bulgaria. This will be in addition to the reduction of the price of the Russian natural gas that we may achieve in our talks with Gazprom. The natural gas from these new deposits will be 5%-10% cheaper than the price that we will request from Russia,” explained Bulgaria’s Economy Minister Traikov. The three new deposits discovered by Melrose contain over 3 billion cubic meters of natural gas which will guarantee 20% of Bulgaria’s annual consumption (20% = 500 million cubic meters) over a period of 6 years.
Source: Darik Radio (29.07.2010)

Natural Gas Deposits in Bulgaria May Lower Its Price on the Home Market by 10% Newly discovered natural gas deposits in Bulgaria may lower its price on the domestic market by ten percent. UK-based company Melrose has discovered three new natural gas deposits - Kaliakra, Kavarna, and Kavarna-Iztok. “We have confirmation for over three billion cubic meters of natural gas, which will secure 20% of Bulgaria’s gas consumption for a period of six years,” said Energy Minster Traycho Traykov. “Next week, the Council of Ministers will grant Melrose Resources PLC concession rights over the exploitation of the gas deposits,” Mr. Traykov said appearing from a meeting with UK Ambassador in Sofia Steve Williams and Melrose CEO David Archer. The deposits’ capacity has been estimated at 500 million cubic meters of natural gas a year.
Source: Standart (29.07.2010)

Bulgaria on course to split BEH in two The Bulgarian Energy Holding (BEH) will most probably be split into two separate holding companies, energy minister Traycho Traykov said Friday. He explained that the first holding company will lump together the Electricity System Operator (ESO) plus transmission system assets, whereas all generating capacities will be bundled in the second one. Traykov pointed out that while there are a few other options on the table, this is the likeliest possibility. At the moment, BEH brings together the country’s main energy assets including national grid operator NEK, state-run gas distributor Bulgargaz, nuclear power plant Kozloduy, coal-fired power plant Maritsa East 2, coal miner Maritsa East, Bulgartransgaz, telecom operator Bulgartel and the Electricity System Operator. Its assets amount to some EUR 8.5 billion. Traykov said that a small portion of the holding company grouping generation companies could be listed for trading on the Bulgarian Stock Exchange (BSE), but no timescale has been set yet. Last week BEH welcomed a second executive director -- Yordan Georgiev, who previously worked at German consultancy Roland Berger Strategy Consultants. Sources read the appointment as a sign for a future slit-up at the company, with each of the current executive directors to be in charge of a separate group.
Source: Dnevnik (02.08.2010)

EU could finance gas link between Bulgaria, Turkey Construction on the future gas link between Bulgaria and Turkey should be modeled on the Nabucco gas pipeline that will pump gas from central Asia to Europe, Bulgaria’s energy minister Traycho Traykov said. Presenting his report on the work done by his ministry over the past year, Traykov said that the ministries of economy and foreign affairs have pooled efforts to work towards attaining this goal. He added that the gas link could be financed by a portion of the BGN 200 million the EU gave Bulgaria under the European Economic Recovery Plan. Traykov said the aim is to break ground on the project within one year. The idea was backed by the joint project company Nabucco Gas Pipeline International and EU energy commissioner Guenther Oettinger. At a recent meeting with Nabucco Gas Pipeline International managing director Reinhard Mitschek during an official visit to Austria, Traykov proposed speeding up works on the gas pipeline which will link Bulgaria and Turkey, but there was no response from the other party.
Source: Dnevnik (03.08.2010)

Chiren's Gas Depot to be Upgraded "The upgrade of the gas depot near the town of Chiren will start in a month," Economy Minister Traycho Traykov said. The construction works will be financed with a loan from the European Investment Bank worth 250 million euro. Meanwhile it emerged that the Bulgarian government has opened talks with UK's Melrose Resources PLC, the concessionaire of the already exhausted gas deposit at Cape Galata, over its reconstruction into a gas storage facility. In two weeks it will become clear how exactly the privatization of Bulgartabac Holding will be carried out. The consultancy company has already prepared its report and it is now to be approved by the Privatization Agency. "The privatization of the holding should be completed by the end of this year," Minister Traykov said. "We are working to open a tender for licensing an oil and gas exploration company to probe the Black Sea shelf for deposits of compressed natural gas," he added. "We are calculating the price of compressed natural gas that may be shipped to Bulgaria from Azerbaijan via Georgia," the minister went on. If the deal is found cost-effective, Bulgaria may receive up to 2.5 billion cubic meters of Azeri natural gas a year.
Source: Standart (03.08.2010)

Bulgaria’s tobacco monopoly Bulgartabac, building firm Montazhi and the state stake in the power distributor majority-owned by Germany’s E.ON should be privatised by the end of the year, energy minister Traycho Traykov told Dnevnik. On Wednesday, the government decided to transfer Montazhi from the Bulgarian Energy Holding (BEG) -- which bundles the country’s top-notch energy assets -- into the State Consolidation Company, through which the Privatisation Agency will sell state assets. The sell-off method for Montazhi has not been determined yet, but the government will certainly offer a majority stake, according to Traykov. He added that a competition will be invited for the selection of a broker for the sale of the state stake in E.ON Bulgaria Networks and E.ON Bulgaria Sales. The government planned to list its 33% stake on the Bulgarian Stock Exchange (BSE).
Source: Dnevnik (05.08.2010)

Extraction form Kavarna Deposit to Lower the Price of Natural Gas Bulgaria’s Cabinet has granted a ten-year concession for the extraction of natural gas to the UK company Melrose Resources, Minister of Economy Traycho Traykov announced. According to minister Traykov, about 250-300 cubic meters of natural gas will be extracted from the Kavarna deposit annually, which is about 10% of Bulgaria's total consumption. Melrose Resources can start the extraction in four months. The Kavarna deposit is located in the Black Sea shelf near the town of Kavarna and has an area of 4.36 square km. It is estimated to have about 773 million cubic meters of gas. The British company will work in two other deposits nearby. The three deposits have supposed total reserve of 3 billion cubic meters of natural gas. Once the three deposits are linked to the respective infrastructure, they can provide about 20% of Bulgaria's annual gas consumption over the next 6 years. The price of Bulgarian gas would be much lower than the one delivered from Russia and as a result the price of natural gas would drop.
Source: Standart (05.08.2010)

Official register îf renewable energy projects to be ready in September The national public register of projects for renewable energy sources (RES) is expected to be ready after mid-September, said yesterday for Klassa Nikola Gazdov, Chairman of the Bulgarian Photovoltaic Association. The register will have a website where everyone will be able to see the most important events in the field of green energy. All projects for facilities, planned to be built in Bulgaria, will enter the register. Besides them, the already installed capacities will also be listed. According to Gazdov, the State –owned NEK (National Electricity Company) and ESO (Electricity System Operator) and the private electricity distribution companies - CEZ, EVN and E.ON should also provide information on this type of projects. Information will be requested from the Ministry of Economy, Energy, and Tourism, the Ministries of Agriculture and Environment, and the State Energy and Water Regulatory Commission. The register will help us decide whether the projects are realistic and which of them could be implemented, explained Gazdov. The map which is to be drafted will show the areas where the electric mains supply is overloaded and the attachment of new capacities is impossible. It is expected the register to provide information on the type of land where the facilities are being build or planned to be built. The system will show what the actual impact of renewable energy sources (RES) on the transmission and distribution grids in the country is and the amount of investments needed for the development of the energy infrastructure in general. Once the register is created and becomes operational, it will be placed at the disposal of the State authorities as well, said Gazdov. He noted that, according to the European Directives, each country had to prepare such a register and to make regular updates.
Source: Class (06.08.2010)

Gazprom: we decide on South Stream, not Borissov, Tadic Serbia and Bulgaria can express their desires about the route of the South Stream gas pipeline project, which will pump gas to Italy and Austria but Gazprom will have the final say, the Russian company’s press office told Belgrade-based newspaper Blitz. The comment comes after statements quoted by Bulgaria’s state-run news agency BTA that Belgrade, through Bulgaria, is attempting to push for moving the pipeline’s entry into Serbia to Dimitrovgrad from Zaychar as contracted with Russia. In exchange for Bulgaria’s support for this idea, Serbian president Boris Tadic agreed that the country will participate in the construction of Bulgaria’s Belene nuclear power project with EUR 350 million, Serbian energy experts say. Russian newspaper Kommersant on Tuesday wrote that Belgrade uses Sofia to get through its view on the pipeline route. Bulgarian prime minister Boyko Borissov and Serbian president Boris Tadic last week announced they had agreed for the pipeline to enter Serbia at a point near Dimitrovgrad. Belgrade is interested in using Dimitrovgrad as thus the pipeline will cross the country’s entire territory. Gazprom argues that this would lengthen the route the raise the project’s price tag.
Source: Dnevnik (12.08.2010)

Half of Bulgaria’s Gas Supply May Come from Azerbaijan Bulgaria may secure as much as 50% of its natural gas consumption with supplies from Azerbaijan. The project may become operational not earlier than in 2013, Bulgartransgaz Director Ivan Drenovichki told the Standart. A meeting of a Bulgarian-Azeri working group was held in the capital, Baku, on Tuesday. The experts discussed the options for shipping compressed natural gas to Bulgaria with the participation of Bulgartransgaz, SOKAR and the Shah Deniz consortium, represented by Statoil, BP and Total. After the construction of the necessary infrastructure, Bulgaria will be receiving two billion cubic meters of natural gas a year.
Source: Standart (13.08.2010)

Bulgaria to sign agreements for gas deliveries with Azerbaijan and Georgia Bulgaria, Georgia and Azerbaijan will sign an agreement for the conduct of a feasibility study on compressed natural gas deliveries to our country by September 24, Ivan Drenovichki, Executive Director of Bulgartransgaz, told Klassa yesterday. According to him, panels of experts from the three countries will meet in Azerbaijan’s capital Baku on that date. Drenovichki suggested it was possible the meeting to be held in Georgia’s capital Tbilisi as well. The idea is Azerbaijani gas to be transported across Georgia and shipped to Bulgaria at the Black Sea coast, Bulgartransgaz sources explained. Thus, about 2 billion cubic metres of gas per year could be delivered to our country. For comparison, Bulgaria’s overall gas consumption stood at some 2.6 billion cubic metres last year. Bulgaria may ask for an extension of the deadline for absorption of the EU funds intended for the construction of a reverse-flow gas connection with Greece, Deputy Minister of Economy, Energy and Tourism Marii Kossev told Klassa. The reason for the required extension is that the negotiations between Bulgaria and Greece on the project have not been finalized yet. Half of the stock of the future company, responsible for the construction, will be owned by the Bulgarian Energy Holding, and the other 50% of it will be shared between the Greek company DEPA and Italy’s Edison. The EU has earmarked ˆ45 mln for the construction of gas pipeline connecting the towns of Komotini and Stara Zagora. The facility will enable our country to receive gas from Azerbaijan or liquefied gas from the terminals in Turkey. According to Kosev, it is not likely the EU to refuse an extension of the deadline for the absorption of these funds. The negotiations are not over yet, because we want to better defend the Bulgarian position in the project, said the Deputy Minister. According to the plan, the construction of the pipeline had to start this summer and be finalized in 2012.
Source: Class (16.08.2010)

HSBC, Rothschild, SocGen vie to advise Belene nuke HSBC, Rothschild & Cie, and Societe Generale made it through to the second phase of the competition for the selection of financial advisors of Bulgaria’s second nuclear power plant Belene near the Danubian town of the same name, said the Bulgarian Energy Holding (BEH), the catch-all structure for the nation’s major energy assets. Six companies showed up for the process, but KPMG—Maguire, Argyle and Ernst and Young dropped from the race. The selected company will carry out a financial analysis of the project and study its economic viability. The Ministry of Economy’s press office told it could not provide a timeframe for selection of an advisor, and noted that building works at the site have been put on hold until completion of the competition.
Source: Dnevnik (20.08.2010)

Gas for the South Stream pipeline is ensured, but for Nabucco - not "The Nabucco gas pipeline, which is supported by the EU, would most likely not materialize because natural gas for it is not ensured," said yesterday Professor Nina Dyulgerova, an expert in international energy security issues. She added that Nabucco was endangered not only because of the lack of natural gas, but also because of Turkmenistan's opposition for supplying fuel and Iran's inability to deliver gas for Nabucco. Another reason for the failure of the project, according Dyulgerova, is a legal case regarding the territories of the Caspian Sea and the unclear financial relations between Azerbaijan and Turkey. "Unlike Nabucco, the Russian South Stream project will be completed, because Gazprom has enough gas," Dyulgerova said. Both planned pipelines are expected to pass through Bulgaria, ensuring the transfer of a total capacity of 94 bn cu m of gas to Europe annually. The capacity of South Stream will be twice as much as that of Nabucco - 63 bn cu m of gas annually. "The advantage of the Russian project is that it will be built on a route agreed between Russia and the other participants in the project rather than by agreements between the transit countries," Dyulgerova said. According Dyulgerova, the Bulgarian Government is deferring its decision on the Burgas-Alexandroupolis oil pipeline by waiting for the environmental impact assessment. The international EIA is expected to be ready by February next year. "The Government copes well with the complicated situation around the energy projects in the Black Sea region. This is a situation in which the administration has to maintain equally good relations with Moscow, Brussels and Washington," says the professor.
Source: Class (20.08.2010)

Consumer Price of Natural Gas in Bulgaria may Fall by 16% "The consumer price of natural gas in Bulgaria may fall by 16 percent over the next few years, if we start exploiting the gas deposits on our territory," said Valentin Kanev, Chairman of the Bulgarian-Black Sea Oil Association. Sofia should also build gas links to Greece and Turkey, which will give the country access to the so-called 'spot markets' According to Mr. Kanev, if we manage to extract 100 million cubic meters of natural gas a year from the deposits on the Black Sea shelf, the consumer price of natural gas in the country may go down by 1.5%. Bulgaria's total consumption of natural gas varies between 4 and 6 billion cubic meters a year. "If we double the yield, the final price may fall by 2.3%, while an annual yield of half a billion cubic meters of gas will slash its consumer price by 8.2%," Kanev went on. Also, the construction of gas links with Greece and Turkey may trigger a twelve-per-cent drop in the final price of natural gas.
Source: Standart (24.08.2010)

The purchase of gas from Melrose would be top priority for Bulgargaz "The top priority for Bulgargaz would be the purchase of maximum quantities of natural gas from the Scottish company Melrose. Those would be included into the energy mix and lead to a significant reduction of gas prices." This is how Energy Minister, Traycho Traykov, answered the question whether the public supplier would purchase in advance some quantities of blue fuel of the deposit at Melrose near Kavarna. "If we want Bulgargaz to purchase a substantial amount of natural gas from the filed of Melrose, this would involve a larger payment. Even if Bulgargaz faces problems with this, we will find a solution," the Minister promised. The expected annual production of natural gas of the Scottish company from this deposit is around 500 mln cu m. If Bulgargaz starts to purchase the entire extracted quantity of gas, the domestic price will fall by 8.2%, predicted the Balkan and Black Sea Petroleum Association. Provided that the volumes are up to 200 mln cu m - the cost of gas will be by 2.3 % lower. As for the Greek interest in Belene NPP, Traykov commented: "The Greek interest in Belene NPP, as well as the Macedonian, Croatian and Romanian is a matter of principle and it has always existed as an option. No particular interest has been revealed. It always results from a specific proposal." Traykov explained that currently the expected total cost of the Belene NPP would be between ˆ8.5-9.5 bn, depending on the agreed increase (indexation compared to inflation in the EU). The index for raising the NPP price has not been yet negotiated with the Russian side, neither has the construction contract. The Minister specified that presently negotiations with Atomstroyexport were being held on the possible reduction of the project value. "When this happens, the cost of each stake percentage would be estimated and after that offers to investors could be made," said Traykov.
Source: Class (27.08.2010)

Russia seeks to double cost of Bulgaria’s Belene NPP AtomStroyExport’s proposal for adjusting the base price for construction of the two reactors in Bulgaria’s Belene nuclear power project is double the EUR 3.997 billion offer on which the Russian firm was picked over Czech Skoda Alliance, energy minister Traycho Traykov said. The Russian company and Bulgaria’s state-run power utility NEK are in intensive talks on signing the main contract for the design, construction and commissioning of the 2,000 MW Belene project, which is meant to offset the loss in generating capacity at Bulgaria’s Kozloduy nuclear power facility following the premature closure of two pairs of 440 MW reactors. The preliminary accord inked in early 2008 expires at the end of September, after which the Russian company could seek between EUR 800 million and EUR 1 billion in damages for Bulgaria’s failure to fulfill its commitments. The main agreement was initially scheduled to be prepared by the middle of 2009 and serve as the basis for the inclusion of German conglomerate RWE. However, Bulgaria and Russia did not forge an agreement within the deadline coordinated with the German firm, which led to its withdrawal from the project, alongside other factors. Traykov said that AtomStroyExport is seeking to adjust the project price tag by between EUR 2.5 billion and EUR 3.5 billion. The reactors’ base price is set at EUR 4 billion. Traykov expressed his hopes the Russian company will agree on a much smaller adjustment during the ongoing negotiations. He told reporters that the power plant is estimated at EUR 9 billion and the government aims to bring this down.
Source: mediapool.bg (27.08.2010)

GDF Suez gears for sale of Bulgarian electricity in region The Romanian unit of energy company GDF Suez has submitted an application for a licence to enter the Bulgarian power market, the State Energy and Water Regulatory Commission (SEWRC) said. The company explained the timing has to do with the pick-up the market is experiencing at the moment, noting that it plans to sell electricity oversees and not in Bulgaria. Plans call for purchasing power from Bulgarian generators and sell it on in Romania, Greece and Turkey. In a report filed with the SEWRC, the French company said it will trade in Bulgarian power through Bucharest-based entity GDF Suez Energy Trading Bulgaria. The new unit is 100%-owned by a Romania-registered company by the same name, which is in turn owned by Belgium’s Electrabel. Bulgaria’s energy watchdog will come up with a decision on the licence application at a closed-doors session on September 13. GDF Suez has submitted with the regulator a business plan by 2014, where it outlines buyout electricity prices of EUR 43 per MWh against a transmission fee of EUR 9.3. However, SEWRC sees this is an unrealistically low price. A company representative said GDF Suez is not interested in the rates at which power sells on Bulgaria’s regulated market because they would not affect its operations.
Source: Dnevnik (01.09.2010)

Moscow Offers Sofia Financing for Bourgas-Alexandroupolis After offering to finance the construction of Bulgaria’s NPP Belene, Moscow has now offered to financially secure Sofia’s participation in the Bourgas-Alexandroupolis project. During negotiations between representatives of the Russian and the Bulgarian shareholders in the jointstock company Trans-Balkan Pipeline, Russia’s Transneft company ha sproposed to finance the realization of the project in full, sources from the Finance Ministry informed. In all probability, Bulgaria’s Finance Minister Simeon Djankov also attended the negotiations, although this information has not been explicitly confirmed by the finance ministry’s press office.
Source: Standart (09.09.2010)

No financial consultant for Belene NPP selected yet The Government has not selected a financial advisor for the Belene nuclear power plant (NPP) project yet, Deputy Energy Minister Marii Kosev, told Klassa yesterday. Despite the promises that a consultant would be selected by the end of August, this did not happen. Kosev explained that the Bulgarian Energy Holding (BEH), which is responsible for the procedure for the selection of a consultant, is still working in accordance with its plan. “The technical proposals of candidates were opened last week and the financial offers will be opened this week,” specified Kosev. The candidates for a financial consultant for the Belene project are the banks HSBC, Societe Generale and a consortium led by the bank Rothschild. The consultant will be expected to give proposals for changing the financial model of the project and help in selecting a strategic investor for the NPP. A new round of negotiations for the construction of the Belene NPP with the Russian contractor Atomstroyexport is expected to be held in September. The additional annex to the contract signed with the Russian company expires at the end of the month. Moscow has already sent the necessary documentation for the NPP to the Bulgarian Government. If the contract is not extended, the Russian side could ask to be paid compensations that might amount to ˆ1 bn. In late August, Energy Minister Traicho Traikov stated that Russia had demanded a nearly two-fold increase of the project’s price. Atomstroyexport won the tender for the construction of the Belene NPP with its proposal to build two nuclear power units with a capacity of 1000 MW for ˆ3.997 bn. The price of the electricity generated there should not exceed ˆ3.5- 3.7/kWh, the offer also projected.
Source: Class (13.09.2010)

NEK to seek an additional ˆ50 mln for the completion of Tsankov Kamak Hydro Power Plant The Bulgarian National Electricity Company (NEK) is seeking an additional ˆ50 mln loan for the completion of the Hydro Power Plant (HPP) Tsankov Kamak (the Stone of Tsanko), announced yesterday to Klassa NEK's CEO, Krassimir Parvanov. According to him, currently negotiations are being held with experts from Credit Suisse and Bank Austria for the granting of the funds. They even offered us more money than we need. This happened due to the good financial performance of the company from the beginning of the year, stressed Parvanov. For the first six months, NEK reported a profit of BGN 80 mln before taxes. The construction of HPP Tsankov Kamak was delayed by nearly two years because of geological problems encountered in the construction of the dam wall. At the moment, the dam has already been filled with water and it is expected to be put into operation by the end of the year.HPP Tsankov Kamak is expected to have a capacity of 85 MW and, thanks to it, Bulgaria will save around 150 tonnes of carbon emissions per year. Austrian company Alpine Bau and Va Tech Hydro are the investors in the project. After the completion of the hydropower system, Bulgaria has undertaken commitment to sell quotas from the saved emissions to Austria in the course of 16 years. NEK also continues negotiations for the construction of Belene NPP, said Parvanov. According to him, currently NEK's representatives want to sign a new additional agreement to extend the deadline for the construction of a second nuclear power station since the previous contract will expire by the end of the month.
Source: Class (24.09.2010)

Bulgargaz lashes out on watchdog over natural gas tariffs The management of Bulgaria’s state-run gas supplier Bulgargaz is baffled by the “maneuvering the State Energy and Water Regulatory Commission (SEWRC) is doing to avoid paying out the entire uncollected revenue to the company.” Bulgargaz executive director Dimitar Gogov made this statement during an open-doors session of the energy watchdog on the new gas price that should take in from October. The firm requested a 1.36% reduction in the tariff, which was trimmed to 0.96% by the regulator. The watchdog’s proposal factors in the company’s uncollected revenue for the six months of the year it estimates at BGN 16 million. Bulgargaz, however, pegs the due revenue at BGN 78 million. “Our financial reports, which are checked by a licensed auditor, explicitly calculate the indicator and I can’t see why SEWRC is disregarding factual figures,” Gogov argued. SEWRC chairman Angel Semerdjiev asked Bulgargaz to submit a written statement on the matter. “Obviously we’re going to continue our theoretical bickering over uncollected and overcollected revenue but in other place and other time,” he said. In august, SEWRC changed the gas price formation mechanism, where uncollected revenue is based on the difference between the company’s revenue and expenses for the review period. Up until then, it was based on the difference between the expenses set by the regulator and actual expenses made by the company.
Source: Dnevnik (29.09.2010)

AtomStroyExport annex expires Bulgaria has still not sealed a fresh agreement with Russian company AtomStroyExport, which was picked contractor for the 2,000 Belene nuclear power project, state-run utility NEK said. The Russian company had agreed to hold on construction works until September 30 until the selection of strategic investor for the project. Experts say there are two possible scenarios for Bulgaria, where it could clinch extension of the delay agreement or be taken to court by AtomStroyExport. A NEK source said the country is keen on the first option but it has yet to win the approval of the Bulgarian Energy Holding (BEH), the catch-all structure for Bulgaria’s top-notch energy assets. AtomStroyExport said it will continue honouring its commitments under the annex. Belene was designed to offset the loss in generating capacity at Bulgaria’s Kozloduy nuclear power facility following the premature closure of two pairs of 440 MW reactors.
Source: Dnevnik (01.10.2010)

NEK to extend its contract with Atomstroyexport The National Electric Company (NEK) has sent a letter to the Bulgarian Energy Holding (BEH) demanding an extension of the contract for the construction of the Belene NPP with Russian Atomstroyexport which expired yesterday. A week ago, NEK’s Executive Director, Krasimir Parvanov, said for Klassa that negotiations were being held on the signing of a new annex to the contract but did not go into details. The initial contract for the construction of Belene was signed with Atomstroyexport in 2006 with the promise that the NPP’s two 1000-megawatt units will be completed by 2013-2014. Construction was estimated at ˆ3.997 bn and the generated electricity was to be sold at ˆ3.5-3.7 per kWh. At present, the Russian side claims more money are needed for the project because of inflation since 2006. The delay in the construction of the generators is a fact. Construction is also costlier. The Government is still looking for European investors in the project after Germany’s RWE gave up its participation last year. A new financial consultant on the project is expected to be selected as well in order to help the State in finding a new investor. This was supposed to become clear at the beginning of last month but the procedure was delayed. Currently, the contenders are HSBC and a consortium headed by Rothschild Bank. The Russian side has already explained that they have prepared a legal claim for nearly BGN 2 bn in compensation for the delay in the construction of the Belene NPP.
Source: Class (01.10.2010)

In an interview Ivan Drenovichki, Executive Director of Bulgartransgas, emphasized on the establishment of gas links with Greece, Turkey and Serbia as the company’s highest priority. In his words, the new links would secure gas deliveries and create competition on the gas market. At the same time they would provide for the considerable available capacity of the Bulgarian gas transit network only 30% of which is used at present. He explained that it was of Bulgaria’s interest to establish the links regardless of the major projects – Nabucco and South Stream. Drenovichki noted that Bulgartransgas and the Azerbaijani SOCAR, as well as companies from the Shah Deniz consortium were cooperating successfully in the implementation of the project for the transit of compressed natural gas from Azerbaijan via the Black Sea. Drenovichki expressed the opinion that both Nabucco and South Stream were beneficial for Bulgaria and would generate significant income for the country, as Nabucco secured the diversification of deliveries while South Stream – of routes. He explained that Bulgaria’s income from South Stream would be higher compared to Nabucco as South Stream had a greater capacity and Bulgaria’s share in it is was also bigger.
Source: Standart (04.10.2010)

Construction of the Nabucco pipeline to start in 2012 Construction of the Nabucco pipeline to start in 2012 "The construction of the Nabucco pipeline is expected to start in 2012," said Dimitar Abadzhiev, Nabucco Gas Pipeline International’s Head of Corporate Affairs, yesterday. He explained for Focus agency that the so-called supporting agreements between the countries and the company owner of the pipe would be signed soon. According to Abadzhiev, various global financial corporations are interested to invest in the construction of the pipeline currently. The facility is expected to cost around ˆ 8 bn and Bulgaria has to pay about ˆ350 mln of this amount. Bulgarian Energy Holding, Turkish Botas, Romanian Transgaz, Hungarian MOL, Austrian OMV, and German RWE are shareholders with equal participation in the Nabucco project. Abadzhiev did not exclude the option for a seventh partner to participate in the EU-backed pipeline. "Iraq will be a major supplier of natural gas for the pipeline in the beginning," said the Bulgarian expert. Iraq is expected to supply some 10 bn cu m of gas per year, as of 2015. Another 8 bn cu m per year will most likely come from the Azerbaijani Shah Deniz 2 field, which still is not being exploited. "By 2018, the entire capacity of Nabucco, of 31 bn cu m of gas annually is expected to be achieved. Iraq alone is able to supply completely the pipeline with gas, but the project aims at diversification of the deliveries," said Abadzhiev. Apart from Iraq and Azerbaijan, Egypt will be able to provide natural gas for the pipeline as well. Two supply tubes - one of the Georgian-Turkish and the other – on the Iraqi-Turkish borders will be built for the Nabucco pipeline.
Source: Class (04.10.2010)

Bulgaria not to pay a BGN 2 bn penalty for the construction of Belene NPP. The contract has been extended. The contract for the construction of the Belene NPP has been extended by six months, broadcast TV+, quoting sources from the Russian corporation Rosatom. In this way, Bulgaria will be protected from a lawsuit for a penalty of BGN 2 bn which Atomstroyexport was ready to launch had the contract not been extended. JSC Atomstroyexport (JSC ASE) is controlled by the state-owned corporation Rosatom which is the contractor for the construction of the second nuclear power plant in Bulgaria. The last annex for the contract's extension expired at the end of September. The new contract annex is expected to help both parties in their agreement on the project until the end of March 2011. At the end of September, NEK (National Electric Company) sent a letter of inquiry to the Bulgarian Energy Holding SPLTD as to whether the contract's deadline for the plant's construction will be extended. So far, BEH have not sent an official response. Until December, Bulgaria and Russia are expected to agree on the construction costs of the plant. The requirement is that its value should not be altered, regardless of the time its construction will take. In the first quarter of 2011, in turn, the consultant for the selection of the plant's strategic investor will be designated, stated for Klassa sources familiar with the procedure. Afterwards, the consultant will need about a year and a half to propose a company as an investor in the nuclear power facility. Actual construction is expected to begin in the middle of 2012 at the earliest.
Source: Class (11.10.2010)

NEK needs BGN 1.1bn to hook up renewables projects Bulgaria’s state-owned power utility NEK needs BGN 1.1 billion in grid investments to be able to connect around 2,000 MW of clean energy projects, according to an analysis of the Bulgarian Energy Forum (BEF) commissioned by the company. Under its EU commitments, Bulgaria should source 16% of its gross energy consumption from renewables and boost energy efficiency by 20% by 2020. “We’ve estimated that NEK will need BGN 1.1 billion to plug in 1,500 MW of wind farms and 500 MW of photovoltaic (PV) power plants,” said energy expert Ivan Hinovski. Inquiries have been submitted about available grid capacity for a mind-boggling around 14,000 MW worth of potential wind and PV power plants but just around 2,000 MW of this could be constructed and grid-connected, according to BEF. “The 14,000 MW figure includes also people who own a small lawn they want to install a PV system on,” Hinovski noted. The energy generated from some renewable sources is intermittent, and experts claim a further 400 MW of hydro power projects will be required as back-up capacity. “These facilities have already been established,” the experts said. According to the analysis, the government is taking no action at the moment to accelerate the process of increasing Bulgaria’s energy efficiency. “Around BGN 4 billion will be needed to beef up the energy efficiency of 80,000 homes but we can’t how this is going to happen by 2020,” Hinovski said.
Source: Dnevnik (12.10.2010)

Serbia expects an invitation for the construction of Belene NPP Serbia expects to receive a written proposal by the Bulgarian Government for its involvement in the construction of Belene NPP in the next month and a half, said before BNR (Bulgarian National Radio) Serbian Minister of Mining and Energy Petar Skundric. He confirmed that during his visit to China this summer he had held principle talks with China Development Bank which was interested in investing in the project. It is also expected to finance the Serbian participation. The proposal was made by Bulgarian Prime Minister Boyko Borissov during the visit of Serbian President Boris Tadic in August. According to Skundric, the stake of the Serbian side has not yet been specified. Minister of Economy, Energy and Tourism Traycho Traykov said that Belgrade would probably buy a minimum share in the second nuclear power plant. So far, they have revealed only an interest to participate as shareholders in the Belene project. PM Borissov offered to Greece to take part as well, while Minister Traykov is having talks with Western European companies that are expected to show interest in the new facility. Until now, however, none of them has responded to the proposal after the German company RW AG withdrew from the project for the construction of Belene NPP in the middle of last year. The reason for this was the lack of clarity on the project financial structure. Skundric anticipates to receive the proposal from the Bulgarian side until early December. The Bulgarian Government has estimated that the plant's construction will cost between ˆ7-ˆ10 bn.
Source: Class (13.10.2010)

Bulgaria Extends NPP Contract with Russian Atomstroyexport Bulgaria has extended by six months the contract with Russian company Atomstroyexport for the construction of stalled Belene NPP, confirming earlier reports. The Bulgarian Energy Holding has extended its Atomstroyexport contract, which expired September 30, by six months, ending March 31, 2011, as reported by Dnevnik.bg. There has been persisting unclarity whether the Belene NPP will eventually be constructed, over withdrawal of earlier investor, German RWE, and lack of clear government commitment earlier this summer. The Bulgarian government has of late warmed up on Belene again. This far, the only concrete investment interest has come from Russia, with some suggestions for possible involvement on the part of China too. The Bulgarian government has expressed the wish to attract a European investor.
Source: Darik Radio (13.10.2010)

NPP Belene Contract with Russia Extended The contract between the Bulgarian National Electric Company (NEK) and Russian company Atomstroyexport has been extended by 6 months, Russian agencies informed. The contract which expired on September 30 has been prolonged till March 31, 2011. During this period Russia expects that the selection of a new consultant on the project is finalized in Bulgaria. The consultant is expected to restructure the project and to find new investors, Standart sources state. So far, Serbia shows the strongest desire to buy shares in Belene NPP. In the energy circles it is said that a westen company shows a very serious interest in the project but it still waits for the selection of the new consultant and just then to take an active part in the project.
Source: Standart (14.10.2010)

Gas Price Frozen Till 2011 Spring Price of natural gas won't be raised until the spring of 2011, to the words of Minister of Economy Traycho Traykov. In an interview with the Bulgarian National Radio he stated that thanks to the negotiated decrease in delivery price at which Bulgargas buys natural gas from Russia and local production retail prices would not be raised as of January 1, 2011. Minister Traykov underlined that at today's meeting with Gazprom president Alexey Miller the Bulgarian part would use all possibilities to negotiate a low price in the new contracts for Russian gas supplies. On the other issue of the negotiations - South Stream gas pipeline project, Minister Traykov expects to be reached an agreement for founding a joint company.
Source: Topix (15.10.2010)

RWE and OMV to decide next year on their investments in Nabucco gas pipeline Two of the major shareholders in the Nabucco gas pipeline project - the German RWE and the Austrian OMV postponed for next year their decision on the project's funding, posted The Economist. Both companies had to make public their intentions for investments this month. One of the reasons for the postponement of the decision is Turkey's announcement that the laying of the tubes for the EU-backed gas pipeline will be carried out by Turkish companies. The Nabucco consortium has planned the construction of the tubes to be implemented by REW and OMV. Apart from the two companies, shareholders in the project are also the Bulgarian Energy Holding, the Turkish Botas, the Romanian Transgaz and the Hungarian MOL. Further delay of the project could make Brussels assume more responsibilities for the gas pipeline construction, according to The Economist. A month ago, Nabucco's shareholders launched discussions with EIB, EBRD and the International Finance Corporation for granting of a loan of about ˆ4 bn for the gas pipeline construction. Another problem facing the project is the lack of source of natural gas for the pipeline, explained the edition. In order the project to be launched, at least overall 8 bn cu m of gas should be transited to Europe annually and the basic quantities are expected to come from Azerbaijan. In order the requirement for transit capacity of 31 bn cu m of gas supply to Europe to be fulfilled, more resources will be needed and the best option for this is Turkmenistan, wrote The Economist.
Source: Class (18.10.2010)

Bulgaria Gets Alpine Bau to Knock EUR 10 M Off Hydro Plant Price Austrian company Alpine Bau has agreed to knock off EUR 10 M from the money owed to it by the Bulgarian government for the construction of the much problematic hydro power plant "Tsankov Kamak". The hydro plant in the Rhodope Mountain near the southern town of Devin became notorious after Bulgarian Prime Minister Boyko Borisov visited the site in March 2010 and expressed his outrage at the fact that a 22-km road to the plant cost the state budget the staggering BGN 220 M. Borisov blamed the former governments, and most notably, the Socialists and the ethnic Turks for using the project to drain money from the state. The outrage of the Borisov government at the situation that it uncovered with respect to state spending on Tsankov Kamak eventually culminated in an investigation and a suit against the leader of the ethnic Turkish party DPS (Movement for Rights and Freedoms) Ahmed Dogan for conflict of interest since Dogan, despite being a MP, was a consultant for Tsankov Kamak and three other similar projects, and received a fee of over BGN 1.5 M. Interestingly, just as the Borisov government haggled with the Austrian construction company, a Bulgarian Court acquitted Dogan of the conflict of interest charges. On Monday, Borisov made his second visit to the site of the hydro plant and met with representatives of Alpine Bau, together with Bulgarian Economy Minister Traicho Traikov and the head of the National Electric Company NEK Krasimir Parvanov. According to Traikov, the Austrian company has agreed to reduce its escalation cost claims by EUR 10 M. Thus, Bulgaria still owes Alpine Bau EUR 20 M in "escalation costs." With Monday's knockoff, the total cost of the Tsankov Kamak, an 80-MW hydro power plant, that Bulgaria is paying Alpine Bau is rounded at EUR 380 M. When the additional expenses of NEK (such as the problematically costly road mentioned above) are factored in, the total price of the project, which was started in 2004, reaches EUR 500 M. NEK CEO Krasimir Parvanov has announced that the state-owned energy company is considering seeking a new loan to finance the payments it has to make to Alpine Bau for Tsankov Kamak because the Austrian company has threatened to file suits over some delays on its part. This is largely the reason the Bulgarian government started "political" negotiations with Alpine Bau over the price. The notoriously expensive hydro power plant is still expected to be started by the end of the year although any revenue that will come from its operation will be insufficient to cover the costs for its construction at least in the years to come. NEK has already gotten an EUR 160 M loan from Credit Suisse for Tsankov Kamak. Since it is said to have been overburdened with investment projects in the past few years, NEK is unable to finance its due payments to Alpine Bau, and has asked its principal, the Bulgarian Energy Holding, to start a tender for a new EUR 50 M loan. Parvanov said NEK has already started preliminary talks for such a loan with Credit Suisse and Bank of Austria but the two banks are said to be "twisting the arms" of the Bulgarian state company by demanding huge interest rates. The NEK CEO said that the company might avoid having to seek a loan to finance Tsankov Kamak if it manages to increase its allowed overdraft from the Bulgarian banks keeping its reserves, and receives up to EUR 250 M that it expects to get from exporting electricity to Turkey starting at the end of 2010.
Source: Darik Radio (19.10.2010)

Faulty Pipes Delay the Start of NPP Kozlody's Reactor 6 Bulgaria will lose up to quarter of a million euros because of some faulty Russian pipes that are part of the safety system of the sixth reactor of NPP Kozloduy. The National Electric Company expected revenues of about 250,000 euros from the export of 160 megawatt-hours of electricity to Turkey in October and November, but this benefit has now been missed, because of the delayed launch of the power reactor. "The export of electricity will be lowered by two-thirds, so as to avoid power insufficiency in Bulgaria," energy and Economy Minister Traycho Traykov said. To his words, the delay has been caused by corroded pipes in the reactor's safety control system. The pipes were supplied by the Russian company Gydropress in 2004 and their warranty expired two years later. Sources from the company said they would do everything possible to supply new pipes by November 15. The power reactor will be operational in three or four weeks, Mr. Traykov said.
Source: Standart (20.10.2010)

Experts to Decide on Belene NPP Safety On Friday, it will become clear if Belene NPP safety will meet the world standards. On Monday, experts from the International Atomic Energy Agency will arrive to Sofia for a second check of the documentation. Last year the Nuclear Regulatory Agency (NRA) returned the project to the designers of Belene NPP to correct some errors and the draft project was submitted to NRA in the spring. By Friday international experts will form an opinion if all observations have been taken into consideration. It is expected that the Nuclear Regulatory Agency to gives a license the State Enterprise for Radioactive Waste for managing units I and II of Kozloduy nuke and thus to start their decommissioning.
Source: Standart (20.10.2010)

Offshore Transactions Become Taxable Ten-percent tax will be levied on all bank transactions of the Bulgarian citizens to offshore zones. This is to apply to payments for services rendered, legal rights, forfeits and damages. This measure will put an end to tax evasion and “import” of profits to offshore companies. Along with that the amendments to tax code passed in parliament at first reading will facilitate business in the EU. The tax levied on earnings from interest rates, copy and license rights that Bulgarian subsidiaries pay to their mother companies in the EU will be decreased from 10 to 5 percent.
Source: Standart (22.10.2010)

Siemens Invited to Team up on Belene Nuke Construction During his recent one-day working visit to Munich (Bavaria) Bulgaria’s PM Boiko Borisov had talks with reps of Siemens, one of the key contractors in the project for the second nuclear power plant. It is also possible that the global powerhouse in electronics and electrical engineering will take part in the project as investor. The negotiations are still to be held but Bulgaria showed interest already during the Days of Bulgarian Economy in Munich October 21. Horst Seehofer, Minister-President of Bavaria said he will lend a shoulder to Bulgaria for Schengen entry. “I’m really impressed by the progress Bulgaria has made. I appreciate and respect the policy your government is pursuing,” Seerhofer told Boiko Borisov.
Source: Standart (22.10.2010)

South Stream company to be set until November 15 Until November 15, a Bulgarian-Russian company for the South Stream pipeline will be set up, negotiated the Bulgarian Prime Minister Boyko Borissov and his Russian counterpart Vladimir Putin during a telephone conversation, informed the Russian government, cited by news agency PRIME-TASS. The joint venture will undertake the development of the techno-economic tasks for the construction of the pipeline. Gazprom and the Bulgarian Energy Holding will be shareholders owning equal stakes in the company. It is expected that a Bulgarian will be elected as Chairman of the Company, said a week ago Energy Minister Traicho Traikov. Then, he and Prime Borissov met with the Head of Gazprom Alexey Miller who was on a visit to Bulgaria. Despite the parity participation of both companies in some of the questions, Russia will have the decisive role, said then the Energy Minister. The marine part of South Stream is anticipated to be completed by 2015. Afterwards, a total of 15.6 bn cu m of gas will be transited via our country annually. The entire pipeline is expected to be completed in 2018 and then over 63 bn cu m of gas will be transferred to Europe. In their phone conversation, Borissov and Putin also discussed the Belene NPP project, which according to both PMs marked a positive development at the moment. The contract deadline for the construction of the second nuclear plant was extended until the end of March next year. NEK (National Electric Company) and the Russian Atomstroyexport are anticipated to agree by then on the construction cost of the plant. Within a month, the Bulgarian side should take a political decision on the NPP construction. Before that, representatives of Rosatom and Atomstroyexport are expected to visit our country so that the final cost of the project is negotiated.
Source: Class (22.10.2010)

Missed benefits for NPP Kozloduy are BGN 9 million In the current work schedules the energy system VI unit of NPP Kozloduy will be started on 6 November, said Energy Minister Traycho Traykov. In his words this was made possible after the good effort of Bulgarian and Russian experts. The new drivetrains of the reactors have already been delivered and are being installed. Thanks to the rapid response, expected missed benefits of electricity production by the NPP are only BGN 9 million, said Traykov. Manufacturer of the equipment is the Russian company Hydropress, which is part of the Rosatom corporation. The express replacement of the drivetrains was made possible after a telephone conversation between the Bulgarian Prime Minister Boyko Borisov and his Russian counterpart Vladimir Putin. The urgent delivery was required after the location of cracks on half of the tubes in the reactor. Manufacture of such equipment takes up to eight months, but the parts sent to Bulgaria were being built for a Russia's nuclear power plant under construction, Rosatom said. The installation of the equipment is expected that to take about a week.
Source: Class (25.10.2010)

Gazprom agrees to launch feasibility study in Bulgaria Gas giant Gazprom and Bulgarian Energy Holding (BEH) have sealed a deal to launch the feasibility study of the Bulgarian section of the South Stream natural gas pipeline, Bloomberg said, citing a statement published on the Russian company's website. Gazprom has pledged to carry out the procedure "quickly", the news agency added. The accord follows an arrangement between Sofia and Ankara at the beginning of October to build an inter-connector, which will be part of the European Union-backed Nabucco gas pipeline project. The gas link is intended to ensure the delivery of 2.0 billion cubic metres of gas annually, which will be infused into Bulgaria's existing pipeline system. Thus, from a transit destination, Sofia will become only a deviation of the European project designed to limit EU's dependency on Russian natural gas supplies,
Source: Dnevnik (25.10.2010)

German Company Shows Interest in Belene Nuke An investor from the German free province of Bavaria has stated interest in Bulgaria's project to build a second Nuclear Power Plant (NPP) in the Danube town of Belene, a high-ranking official with the Bavarian Economy Ministry confirms. The Head of the Southeastern and Central Europe Directorate at the Ministry, Martin Grossman, revealed the information for journalists Wednesday, saying it was true Bulgaria approached Bavaria about the NPP, however, the talks were held without a representative of his institution. Grossman declined offering further details, but promised more would be announced when "the time is right." On Monday, Prime Minister Boyko Borisov made it clear Bulgaria has found a strategic foreign investor for Belene's construction. He said that the investor is a company from Bavaria, and that he held talks with the German company in question during his last week's visit to Munich. A day earlier, the Speaker of the Parliament, Tsetska Tsacheva, made the same announcement.
Source: Standart (28.10.2010)

“Belene” NPP to Cost up to 6.5 Billion Euro The cost of “Belene” nuke will exceed by 0.5 to 2.5 billion euro the base reference price of the project - 3.997 billion euro. The negotiations with the Russian company have been conducted in that framework as Bulgaria’s goal is the final price to be close to the lower limit, Minister of Economy Traycho Traykov stated. The base reference price of 3.997 billion euro is written in the contract with Atomstroyexport. The negotiations with a possible German investor in “Belene” project are still in progress. “Including Russia as an investor is also probable, as long as this is strategically and economically profitable to Bulgaria,” Minister Traykov said.
Source: Standart (29.10.2010)

Minister Traicho Traikov: The price of Belene NPP may rise with an additional amount of up to ˆ2.5 bn The price of Belene NPP (Nuclear Power Plant) may rise with an additional amount in the range from ˆ 0.5 bn up to ˆ2.5 bn, said yesterday Traicho Traikov, Minister of Economy, Energy and Tourism. The talks between Bulgaria and Russia about the indexation of the project price are currently underway. The final cost of the project is expected to be clear by the end of this year. According to the contract signed in 2006, the construction of the blocks was expected to cost nearly ˆ4 bn. Officials from the Russian Atomstroiexport company which is the project contractor explained early last year that the construction of the two 1000-megawatt reactors would cost more than ˆ6.5 bn. This price does not include the construction of the respective infrastructure needed for the connection of the reactors to the electrical grid which NEK (National Electricity Company) has to build. "The increase in the value of the Belene NPP project depends on the inflation but we will demand the price appreciation to be as small as possible," said Traikov. "The agreed decrease in the natural gas prices this summer, after negotiations with the Russian partners, was an extraordinary event," said the Minister. He added that prices would become even higher. Two days ago, Stanislav Tsigankov, Chief of Gazprom External Economic Activity Department, said that a further reduction in Russian gas prices for Bulgaria would not be made. Our country shows interest in participating in the development and delivery of gas from an offshore field in the Mediterranean. It is located in the Israeli economic zone and is expected to contain substantial volumes of gas. I would like to discuss how Bulgaria, Eastern and Southern Europe will be able to participate in the building of this infrastructure immediately after the discovery is established in order to ensure a new level of energy independence, added Traikov.
Source: Class (29.10.2010)

Bulgaria negotiating cost escalation for Belene NPP Bulgaria is negotiating a fixed cost escalation of EUR 1 billion to EUR 2.5 billion to the price of Belene nuclear power plant with Russian Atomstroyeksport, Economy Minister Traicho Traikov said as quoted by Dnevnik. The country and the Russian company sealed an agreement in 2008 to construct the plant for some EUR 4 billion, with the price to be adjusted to the average inflation rate. The Minister also said that Russia could join the NPP project as an investor if the move is economically and strategically advantageous. At the end of 2009, Russian state-run nuclear company said it was keen to extend a EUR 2 billion loan to Bulgaria to fund the project, bu the country decided not to take the finance, as it is seeking an European investor for the plant after the withdrawal of German RWE. A week earlier, Prime Minister Boyko Borissov stated that the country has already held meetings with potential investors for the NPP in Germany. So far, Serbia is the only party to have shown interest in the project, which is however seeking financial resources in order to take part.
Source: Dnevnik (29.10.2010)

Energy sector still most profitable in Bulgaria Bulgaria's energy industry remains the country's most profitable sector, while segments strongly backed by the government such as transport continue to witness obstacles, according to the earnings reports of state-run companies as at end-June, published on the Ministry of Finance's website. Hospitals reported contradictory figures in the period, while entities under the wing of the Finance and Defence Ministries registered weakened results. State-run power utility NEK booked the highest profit of slightly over BGN 130 million against a loss of BGN 17 million a year earlier. Among the best performers was also Kozloduy nuclear power plant, which saw its profit surge 76% to BGN 42.6 million. The growth was attributed, however, to the deferred costs for spent nuclear fuel disposal, which saved the company BGN 42.6 million. Electricity System Operator (ESO), a subsidiary of NEK, and Bulgarian Energy Holding (BEH) also reported positive results of BGN 52 million and BGN 104.3 million, respectively. Meanwhile, coal-fired power plant Maritsa East 2 registered a loss of BGN 28.3 million, down 67% on the year, due to lower proceeds from electricity sales. National railway carrier BDZ, the weak spot of the country's transport industry, widened its loss on a consolidated basis by 40% to BGN 62 million. Although its cargo transportation started to increase, underpinned by the recovery in economic activity, it was still below the September 2009 levels. Postal services operator Bulgarian Posts also suffered a BGN 822,000 loss against a positive result of BGN 2.8 million a year earlier, due to a drop in revenue from postal services. Among the Transport Ministry's major entities, Sofia Airport was the only company to preserve last year's profit of BGN 11 million despite the 7% decrease in revenue. Military vehicle repairer Terem-Khan Krum, controlled by the Defence Ministry, broadened its loss for January to September to BGN 3.115 million against BGN 2.38 milion in the same period of 2009. The performance of local state-run hospitals proved to be the most inconsistent, with the hospitals in Ruse, Varna and Sofia's St. Anna reporting negative results.
Source: Dnevnik (02.11.2010)

Bulgaria’s Economy Minister Turns on Natural Gas Tap From today on, the Bulgarian consumers of natural gas may rely on home supplies, in addition to those from Russia. Economy Minister Traycho Traykov will open a new gas field near the coastal city of Varna at 1 pm today. The exploitation of the natural gas field is carried out by the Melrose Resources Company, which has signed a concession agreement with the Bulgarian Government. Until two years ago, the company was exploiting the Galata gas field at the north coast of Bulgaria. The new gas field is expected to pull down the consumer price of natural gas by about one percent, as Bulgargas’s expenses on its exploitation are lower than the price of the natural gas supplied from Russia.
Source: Standart (04.11.2010)

No Gas Price Hike in Bulgaria after New Year The price of natural gas in Bulgaria will not increase as of the New Year 2011, stated the director of Bulgargaz Dimitar Gogov during the symbolic opening of a new gas fields in Kaliakra and Kavarna at the Black Sea. "State-run Bulgargaz is now a competitor of Russian Gazprom,” Bulgaria’s PM Borissov joked when he personally turned on the tap. The local extraction of natural gas guarantees diversification of the market and lower prices, PM Borissov added. The event was attended by Bulgaria’s Minister of Economy, Energy and Tourism, Traicho Traikov, UK Ambassador to Bulgaria Steve Williams and the director of Scottish company Melrose Resources PLC David Archer. The deposits capacity estimated at 400 million cubic meters a year will satisfy 15% of the domestic consumption as the gas deposits will be exhausted no sooner than in 6-7 years.
Source: Standart (05.11.2010)

Steel pipes for South Stream will be made in Kremikovtzi Pipes for South Stream and Nabucco could be made in Kremikovtzi. This option was discussed with representatives of the German Manesman, which is the largest producer of the so-called seamless pipes necessary for the construction of gas pipelines. In case the company is chosen to supply the equipment, it can be done on a site of the steelmaker. Kremikovtzi does not have the required equipment, but the Germans can bring the installations for pipes here and to make only prefabs in the factory. Two Chinese companies will argue for the assets of the plant on auction today. One of the companies is from Shanghai and the other is also Chinese, but its headquarters is in Singapore. They will bid for the production site with starting price of BGN 452 million. Today Kremikovtzi also turned 47 years old. The first five mills in the metallurgical giant were launched on November 5, 1963. This day is celebrated as official holiday of the steelmaker. In the 13th fatal hour of the day it would become clear whether the second attempt to sell the assets of the bankrupt plant would be successful. No candidates appeared at the previous auction on September 13. The price was EUR 565 million but was reduced due to lack of interest. According to trustee Tzvetan Bankov, if there are no candidates now as well, other options would be sought, but the price cannot be reduced further as the funds would not satisfy the claims of creditors. The smelter has debts of over BGN 2 billion. Among them is the state aid of over BNG 700 million, which is not yet recognized by the court.
Source: Standart (05.11.2010)

Bulgaria could export electricity from Belene NPP to Syria "After Bulgaria completes the construction of the second nuclear power plant, Belene NPP could create prerequisites for electricity exports to Syria, where there are shortages of electricity," said yesterday the Bulgarian President Georgi Parvanov after his meeting with his Syrian counterpart Bashar al-Assad, who is attending Bulgaria. This the first visit of the Syrian Head of State in our country for the last 24 years. According to Parvanov, both sides have been holding negotiations with Turkey and Azerbaijan, with other countries of the Black Sea and Caspian region for the opportunity to be supplied with natural gas and oil. "I think, in the network to be set up, both sides could find common ground and means of interaction," said further Parvanov. Al-Assad pointed out that Bulgaria could become part of the establishment of energy and transport systems of Syria and Turkey. According to him, Syria is currently building strategic relationships with its neighbor Turkey, implementing numerous infrastructure projects. "Why not extend this infrastructure so that it covers Bulgaria which is another neighbour of Turkey," said Al-Assad. The Delegation of the Syrian President also includes the Syrian Minister of Economy and Trade, Lamia Asi, the Chairman of the Syrian-Bulgarian Business Council, Dr.Assef Mohammad Issa and representatives of over 35 Syrian companies. In 2009, the trade turnover between Sofia and Damascus fell by 57% year-on-year. For the first half of 2010, however, nearly 130 % growth was registered in merchandise traffic over the same period of 2009. Syria's share of the total trade volume between Bulgaria and Arab countries was 20.4% for the period . For the first half of 2010, the trade turnover stood at $ 93.1 mln.
Source: Class (10.11.2010)

Ministry of Environment and Water requests a revision of the assessment of the Burgas - Alexandroupolis oil pipeline The Ministry of Environment and Water returned for revision the environmental impact assessment of the Burgas - Alexandroupolis pipeline which has to transport Russian oil. This will practically delay the implementation of the project for an indefinite period of time and will confirm Bulgaria’s position which is to be stated during the forthcoming visit of Russian PM Vladimir Putin to our country, experts commented to Klassa. Back in September 2009, PM Boyko Borissov stated that the environmental impact assessment for the oil pipeline was not favourable and that our country could withdraw from the project for the transportation of Russian oil through Bulgarian territory from Burgas to the Greek port of Alexandroupolis on the Adriatic coast. There are four reasons why the Supreme Expert Environmental Council returned the assessment. These are that the option for the reloading of oil “at dock” is deemed inappropriate, but without specifying any reasons, and that there is no assessment on how an oil spill would affect fisheries, mussels farms and tourism. No measures for dealing with oil spills have been specified either. The project assignor - Trans Balkan Pipeline BV - Bulgaria Branch - has two months to deal with these issues. The Ministry of Environment will come up with a decision a month after. If a positive assessment is made, there will be meetings for public discussions with municipalities that could be affected by the construction of the pipeline. The Minister of Environment has to announce his final position 45 days after that.
Source: Class (10.11.2010)

NPP Kozloduy to Receive Second Breath "The management of NPP Kozloduy has taken measures to extend the life-span of nuclear reactors five and six," NPP Kozloduy CEO Kostadin Dimitrov told the national radio. A public procurement tender to analysis and assessment of the reactors' potential will be announced soon. The plant's management is in negotiations with the Russian company TVEL over lower prices of the supplied fresh nuclear fuel. Dimitrov will also ask the state energy regulator to increase by ten percent the quotas of electricity that could be traded freely. At present, 70% of the electricity generated by NPP Kozloduy is traded on the regulated market.
Source: Standart (10.11.2010)

Borissov Tries to Lower Gas Price by 5% during Talks with Putin Bulgaria's PM Boyko Borissov and his team of experts will try to negotiate a five-percent decrease in the price of the Russian natural gas supplied to Bulgaria during their meeting with Russian Prime Minister Vladimir Putin. This became clear from a statement of Economy Minister Traycho Traykov. Mr. Putin and is scheduled to pay a working visit to Sofia on Saturday, during which he will be accompanied by Russia's Energy Minister Sergey Shmatko, Gazprom CEO Alexey Miller, Rosatom President Sergey Kirienko and Russia's Deputy Foreign Minister Vladimir Titov, who held an office as Russian ambassador in Sofia. From Traykov's statement it becomes clear that natural gas price will be one of the priorities on the agenda during the Borissov-Putin talks. As to the possible participation of Serbia and Croatia in NPP Belene project, Traykov said the decisions of Zagreb and Belgrade are to be announced in a few days. Quoting sources from the Serbian government, the Belgrade-based Blitz newspaper wrote Tuesday that Serbia may buy a five-percent share in the nuclear power plant, which will cost between 200 and 350 million euro. According to Croatian PM Ms. Jadranka Kosor, Zagreb will not participate in the NPP Belene project, as it is following its own energy strategy.
Source: Standart (10.11.2010)

Borissov and Putin talk details of the bilateral agreement The Prime Ministers of Russia and Bulgaria, Vladimir Putin and Boyko Borissov, held a third telephone call for the last three weeks, in which they again discussed the implementation of joint energy projects. This was announced by the Russian Government's Spokesman, Dmitry Peskov, quoted by the Russian news agency ITAR-TASS yesterday. The conversation was conducted as soon as the Government decided on the bilateral agreement on the establishment of a Bulgarian-Russian joint venture company between the Bulgarian Energy Holding SPLTD and Gazprom as well as on the shareholders' agreement between the two companies. The new company will operate the Bulgarian section of South Stream gas pipeline, which will transmit overall 63 bn cu m Russian natural gas to Central Europe. According to Minister of Economy, Energy and Tourism, Traicho Traikov, the provided signing of the shareholders' agreement for the South Stream and statute of parity company is targeting the implementation of the arrangements at intergovernmental and inter-corporate levels. The majority quota for taking decisions in joint stock company, however, will be determined ultimately during the visit of the Russian Prime Minister Vladimir Putin on Saturday. On Friday, the Chairman of the Gazprom Management Board, Alexey Miller is also expected to arrive in Bulgaria and perhaps also his Deputy Alexandar Medvedev, who in turn is the CEO of the Gazpromexport LLC. This means that on Saturday talks for price decrease of the Russian natural gas supplied to Bulgaria will be held, both under the existing contract and under the contract for delivery after 2011, predicted Russian sources. In October, Miller agreed with the Bulgarian Energy Holding SPLTD on the Bulgarian transit gas pipeline to Greece to be the basis for the bifurcation of the South Stream to Italy, instead of constructing of a new facility. Yesterday, Traikov indicated that the final decision for investment on the Bulgarian side would be taken as soon as the pre-investment feasibility study is ready, which would determine the profitability degree of the project for Bulgaria. The project value of the pipeline section through our territory stands at about ˆ800-900 mln. The Spokesman of the Russian PM, Peskov explained that in addition to this project, Borissov and Putin also discussed other issues of bilateral co-operation with a view to his upcoming visit.
Source: Class (11.11.2010)

Bulgaria's govt okays South Stream JV creation Three days before the official visit of Russian prime minister Vladimir Putin in Sofia, Bulgaria's government gave the go-ahead to the creation of a joint venture (JV) which will build and operate the Bulgarian section of the South Stream natural gas pipeline. The new business will be registered in Bulgaria and will be controlled on an equal-equity basis by state-held Bulgarian Energy Holding (BEH) and Russian gas major Gazprom. The JV's capital will be with a size sufficient to cover the respective stage of the project's development, Energy Minister Traicho Traikov said without revealing whether BEH will provide part of the funds.
Source: Dnevnik (11.11.2010)

Bulgaria has finally dispelled any doubts about its commitment to the Russian-sponsored South Stream gas transit pipeline as the Borisov Cabinet decided to sign a shareholders' agreement with Gazprom for the construction of the project's Bulgarian section. During its regular meeting on Wednesday, the government decided in favor of the setting up of a joint venture with Gazprom for the construction of the Bulgarian route of South Stream. The actual agreement is to be signed during the upcoming visit of Russian Prime Minister Vladimir Putin to Sofia on Saturday, November 13, 2010. Gazprom and the Bulgarian Energy Holding (BEH) each will have a share of 50% in the joint venture, which will manage the construction and the operation of the Bulgarian section of South Stream. Last week, the Bulgarian Energy Holding and Gazprom have announced the start of a tender to select a company to carry out a preliminary investment study for the construction of the South Stream gas pipeline on Bulgarian territory. The start of the tender was announced Thursday by the press office of the Bulgarian Energy Holding, a state-owned mega-structure. The long-anticipated first specific step towards the realization of the Russian-sponsored project South Stream came after months of uncertainty about the fate of the project amidst rough talks between the Borisov Cabinet in Bulgaria and the Putin-led leadership in Moscow.
Source: Darik Radio (11.11.2010)

Bulgaria insists on up to ˆ5 bn price for Belene NPP “Bulgaria insists on a price of around to ˆ5 bn for Belene NPP,” said Minister of Economy, Energy and Tourism Traicho Traikov. According to him, our country would not accept the Russian offer for the construction of ˆ6.3 bn. “This was the latest proposal for the final cost of the project,” said Russian PM Vladimir Putin during his visit to Bulgaria. In 2006, the Russian company Atomstroyexport won the tender for build a second nuclear power plant in our country. The construction of its two 1,000-megawatt units had to cost ˆ3.997 bn. The Nuclear Regulatory Agency is expected to approve the technical project for the plant by the end of 2010. Minister Traikov added that the consultant for Belene NPP was to be selected yesterday. “The name will be announced officially today,” Maya Hristova, head of the Bulgarian Energy Holding (BEH), explained to Klassa. The shortlisted candidates are HSBC bank and a consortium headed by Rothschild Bank. The selected consultant is expected to offer a new option for the financial structuring of the Belene NPP project and to assist in the preparation of a tender for selecting a strategic investor for the plant. “Once the consulting company is chosen, the programme for its work will be drafted,” said Traikov yesterday. According to his opinion, strategic investors interested in the project would appear when the State announces the proposed parameters of their financial contribution. Preliminary discussions have already been held, on an intergovernmental level, with Serbia and Macedonia, which have been offered minority shares in Belene NPP and they have shown interest, the Minister added.
Source: Class (16.11.2010)

Bulgaria to Profit EUR 1 Billion From South Stream Bulgaria will profit about one billion levs from the construction of the South Stream gas pipeline, owing mostly to the economic activity that the project's realization will trigger. This became clear from a statement of Bulgaria's Economy and Energy Minister Traycho Traykov during a meeting with representatives of the business. The sum has been calculated on the basis of the new job positions that the realization of the energy project will open, as it includes various side activities such as, for instance, the construction of the necessary infrastructure. In addition, Bulgaria will profit $2.4 billion from transit fees over a period of ten years. At present, Bulgaria makes about 100 million dollars a year from the transit of Russian natural gas to Europe. When it becomes operational, the South Stream pipeline will bring profit of about 300 million dollars a year from transit fees alone, but it should be equally shared by the partners in the project.
Source: Standart (16.11.2010)

Sofia Joins South Stream, Nabucco Is Priority, too Sofia has no intent to limit its energy interests with South Stream and watches carefully the future of the other European gas pipeline - Nabucco, Rossiyskaya Gazeta writes. The visit of PM Vladimir Putin to Sofia and the signing of agreement for founding a Russian-Bulgarian joint stock company for the construction of South Stream gas pipeline and the future of this important to Europe project yesterday were still the main topic in Russian media. Rossiyskaya Gazeta puts an accent on the statement of Alexander Miller - president of the Russian gas giant Gazprom, that currently there is no problem with the financing of South Stream project. Alexander Miller stated on Saturday that Romania could not take the place of Bulgaria in South Stream project any more, but it could join the project on general grounds as one of the partners. Bulgaria might get reduction in gas price and might have majority in the board of directors of the joint company, which will manage the local segment of the pipeline, Russian business daily Vedomosti thinks.
Source: Standart (16.11.2010)

HSBC is the new financial consultant on Belene NPP “The British HSBC Bank was selected as financial advisor on the Belene NPP project,” Minister of Economy, Energy and Tourism Traicho Traikov said yesterday. It won in a competition with a consortium headed by Rothschild Bank. HSBC will replace Deloitte, whose contract for consultancy services was terminated. The consultant is expected to offer a new option for the financial structuring of the Belene NPP project and to assist in the preparation of a tender for selecting a strategic investor for the plant. Traikov commented that the construction of Belene NPP is “like a car that is almost ready, but still a quarter of the agreed price should be repaid for the wheels. The supplier tells you that the car will cost ˆ4 bn if it is white and ˆ6.3 bn if it is metallic, but that only metallic vehicles are made. Traikov was adamant that the agreement between the Bulgarian Energy Holding (BEH) and Gazprom on the South Stream project was in full compliance with EU legislation. According to him, the most sensitive moment in it concerns the access of third parties which are no shareholders in the project to the pipeline. According to the agreement, the joint company will demand derogation from the EU, related to the ability to provide access of third parties to the pipeline. “This was stated in the shareholders' agreement,” added Traikov. We will demand derogation for the Nabucco pipeline as well, where half of the pipeline capacity is reserved for the shareholders in the project. “The problem is that in the intergovernmental agreement of 2008 is stated that the whole capacity will remain for the Bulgarian Energy Holding (BEH) and Gazprom,” said the Minister. “Five companies have expressed interest to conduct the feasibility study for the South Stream project,” announced officials from BEH. These are Russian Giprogaztsentar, Saipem - a subsidiary of Italian Eni (participant in the South Stream), a consortium between the Ukrainian Yuzhnigiprogaz and the Bulgarian Gastec BG, the British Jacobs Consultancy and the Dutch ILF Consulting Engineers.
Source: Class (17.11.2010)

HSBC to counsel Bulgaria on Belene NPP project Bulgaria has picked UK bank HSBC to advise it on the Belene nuclear power plant (NPP) project, Energy Minister Traicho Traikov told. The Minister declined to provide details on the price agreed with the bank, saying only that the UK bank was chosen over Rothschild. Frther information will be disclosed by state-held Bulgarian Energy Holding (BEH), which is the projects' contractor, he added. BEH has so far unveiled no details regarding the consultancy tender, which has been running for almost a year. The nuke plant's construction was put on hold after the withdrawal of the project's strategic investor German RWE in 2009. The Bulgarian government plans to lower its stake in the plant to 20% from the current 51%. The country's Prime Minister Boiko Borisov has repeatedly stated Bulgaria's eagerness to proceed with the plant's construction only after attracting a new European investor.
Source: Dnevnik (17.11.2010)

Bulgaria to Import Electricity if Kozloduy Nuke Stops Bulgaria faces the risk of importing electricity if one of the units of Kozloduy nuke stops for some reason during the winter. There are certain problems with power generating facilities kept as cold reserve in Varna and Bobovdol Thermal Power Plants, GERB MP Valentin Nikolov explained. According to him, these power plants won’t be able to substitute even one of the 1000 megawatt units of Kozloduy NPP in case it is switched off. Valentin Nikolov claimed that Bulgaria’s coal reserves were insufficient. So, in case of any problem in Kozloduy nuke in the winter hydropower plants will have to compensate for deficient power supply. In his words, Bulgaria doesn’t face a risk of power restrictions as it could import electricity as Macedonia does, because it doesn’t maintain a cold reserve.
Source: Standart (19.11.2010)

NEK, Kozloduy NPP and Maritsa Iztok 2 TPP to merge “The National Electric Company (NEK) and the state-owned power plants Kozloduy NPP and Maritsa Iztok 2 TPP could merge,” Valentin Nikolov, MP from GERB (Citizens for European Development of Bulgaria) and member of the Parliamentary Economic Policy, Energy and Tourism Committee said yesterday. According to him, this is one of the options for restructuring the Bulgarian Energy Holding (BEH) from which the gas operator Bulgartransgaz and the Electricity System Operator (ESO) are expected to be removed by the end of March 2011. “The merger will improve NEK’s financial situation and will prevent its decapitalisation,” Nikolov argued. NEK’s operating profit for the first half of 2010 stood at BGN 80 mln. Nikolov specified that attracted capital currently accounts for 70% of NEK’s funds and the share of its own capital is 30%. “If the proposed merger is approved, the new company, along with ESO, Bulgargaz and Bulgartransgaz, will constitute the future BEH,” Nikolov explained, adding that the absurd situation of NEK and Kozloduy NPP competing to sell their electricity on international markets would be avoided. The other option for BEH’s restructuring is to separate the companies generating electricity from power distribution utilities. In this case, Kozloduy NPP, Maritsa Iztok Mines and Maritsa Iztok 2 TPP will constitute one structure, while NEK, ESO and Bulgartransgaz will be in another one. “Distribution companies might be structured as a directorate under the umbrella of the Ministry of Economy, Energy and Tourism,” said Nikolov. It is not yet clear what will happen to the large hydroelectric power plants owned by NEK. The future of Bulgargaz and Bulgartel is not known either. According to Nikolov, the cold reserve maintained in the Bobov Dol TPP and the Varna HPP is endangered. He specified that less than half of the required 1,000 MW capacity is being maintained there. The cold reserve is switched on in case of problems with any of the power generating capacities in the country in order to ensure electricity supply. According to Nikolov, the maintained reserve is not sufficient and this might turn out to be a problem if one of Kozloduy’s units stops. In such a case, the large hydroelectric power plants should be used to compensate for the decommissioning of Kozloduy’s generator. “Part of the problem is that the Varna HPP does not have sufficient quantities of coal in stock,” the MP said.
Source: Class (19.11.2010)

Bulgaria may add Kozloduy NPP, Maritsa East 2 to NEK's structure Bulgaria considers merging Kozloduy nuclear power plant (NPP) and coal-fired power plant Maritsa East 2 into state-run power utility NEK, which will be in turn pulled out from the Bulgarian Energy Holding (BEH), Valentin Nikolov of the ruling GERB party said on Thursday. The reshuffle is aimed at making NEK a more competitive company, Nikolov, who is also a member of the parliament's energy committee, said. Sofia and Brussels are currently talking over two possible scenarios concerning the holding's restructuring. Apart from the integration of Kozloduy NPP and Maritsa East 2 to NEK's structure, affiliated companies Bulgartransgaz and Electricity System Operator could be united into a single entity controlled directly by the Economy Ministry. That way, Bulgaria will seek to meet the requirements of the EU's third energy package, which will come into force by March 2011. Meanwhile, the fate of the other entities part of the holding is still unclear. BEH was created in 2008 to group the assets of the country's Kozloduy NPP, gas monopoly Bulgargaz, Bulgartransgaz, telecommunications operator Bulgartel, NEK and ESO, coal-fired power plant Maritsa East 2 and the Maritsa East coal mines. Bulgaria unveiled its decision to shut BEH in August 2009.
Source: Dnevnik (19.11.2010)

NEK’s estimates of electricity consumption exaggerated for the sake of the Belene NPP project “It is not certain whether there will be a market for the electricity generated at Belene NPP,” energy expert Professor Plamen Tsvetanov said yesterday before the conference of the Association of Bulgarian Energy Agencies to be held in Plovdiv. He explained that the National Electric Company (NEK) had deliberately exaggerated its forecasts for electricity consumption in the region for the next 15 years. The aim was to justify the construction of the Belene NPP, specified Tsvetanov. According to the expert, Bulgaria’s new energy strategy is full of manipulations, one of them being that our country’s industry is 0.79 times more energy-consuming than the average level for other EU countries. “Compared to Turkey, Bulgaria’s industry consumes 4 times more energy,” explained Tsvetanov. Another problem of Bulgaria’s energy policy is improving our energy security and the country’s dependence on external supplies should be known for this purpose. According to Tsvetanov, Bulgaria is dependent for 48% of the fuel supply for domestic power plants because we import Russian deliveries for the Kozloduy NPP. According to him, our national sovereignty was betrayed by the sale of Bulgarian energy utilities to foreign companies. There are also problems related to the modernisation of the country’s power grid where NEK has not invested any money over the last 10 years, while the funds were used on building the Tsankov Kamak Hydro Power System and the Belene NPP. A similar stance was voiced some time ago by NEK’s Executive Director Krassimir Parvanov, who admitted that NEK had been operating without a business plan, while its proceeds were pumped into the construction of these facilities. NEK has used part of the ˆ250 mln loan from the French BNP Paribas to complete the construction of Tsankov Kamak. The energy strategy which is being prepared now does not mention the modernisation of existing facilities in the country. According to Tsvetanov, it is not necessary to build new plants because it is not clear whether they will be competitive compared to those already existing in the region.
Source: Class (23.11.2010)

Serbia confirms willingness to join Belene nuke project Serbia has officially declared its eagerness to participate in the Belene nuclear power plant (NPP) project, Bulgaria's government press office said on Tuesday. In a letter to Bulgarian counterpart Prime Minister Boiko Borisov, Serbia's Prime Minister Mirko Cvetkovic has requested further information on the project, stating the state would decide whether to be one of Belene's investors after becoming familiar with the documentation. Borisov has ordered the Economy Ministry to shortly send Serbia the required papers, according to the statement. Bulgaria has been on the lookout for a new strategic partner for the nuclear plant for over a year, following the withdrawal of German RWE. In 2009, the company gave up its 49% stake in the project after the government announced plans to reduce its 51% holding in the plant.
Source: Dnevnik (24.11.2010)

Austria Shows Interest in Bulgaria's Nuclear Plant Project Austrian companies have shown interest in taking part in the project to build a second Bulgarian Nuclear Power Plant (NPP) in the Danube town of Belene. The information was reported Tuesday by Dr. Michael Angerer, Commercial Counsellor with Austrian Embassy in Bulgaria, during a conference dedicated to the competitiveness of Bulgaria's economy. Austrian businesses can become subcontracts in the construction, Angerer said, adding Austria is very interested and follows closely the development of the nuclear energy sector in countries such as the Czech Republic, Hungary, Slovenia and Bulgaria. According to the Austrian diplomat, the fact the new NPP will use secure standards is of major importance to Austrian investors. In conclusion, Angerer reiterated the Austrian interest in participating in the development of Bulgaria's energy sector.
Source: money.bg (24.11.2010)

Bulgaria okays BEH, Poseidon JV creation Bulgaria's government has given the greenlight to the creation of a joint venture between Bulgarian Energy Holding and IGI Poseidon, which will build, own and operate the interconnection gas link between the two countries. Speculations on the stretch's construction emerged in early 2008, when Russian gas deliveries through Ukraine to the EU were suspended, with Bulgaria suffering the most severe gas shortages due to the lack of alternative routes. For that reason, Brussels agreed to grant Bulgaria EUR 45 million under the European Energy Recovery Programme to build the link. The 168.5-kilometre gas route linking Dimitrovgrad, Haskovo and Komotini is valued at a total EUR 117 million, with Sofia and Athens to provide EUR 36 million each to the project. The pipeline, expected to ensure alternative gas deliveries to Bulgaria from the Caspian area and the Middle East, should be moved into investment phase by the end of 2011. The country also considers building inter-connectors with other neighbouring countries, including Romania, Turkey and Serbia.
Source: Dnevnik (25.11.2010)

Serbia Prepared to Invest in Belene Nuke Serbia has officially stated its interest in becoming one of the investors in Bulgaria's project to build a second Nuclear Power Plant (NPP) in the Danube town of Belene. The official letter was sent to Bulgaria's Prime Minister, Boyko Borisov, from his Serbian counterpart, Mirko Cvetcovic. In the letter, Cvetkovic voices the desire of the Serbian Energy Ministry to examine the documentation on the NPP. After that the Serbian side is to make the final decision on the country's participation. Borisov has ordered the Bulgarian Economy and Energy Ministry to provide the requested information ASAP.
Source: Standart (25.11.2010)

Only Long-Term Energy Export Contracts Make Belene Cost-Effective " The construction of Belene, Bulgaria's second nuclear power plant, at Belene will be cost-effective only if long-term power export contracts are sealed , according to a report of the National Electric Company NEK that has based its 10-year business plan on these calculations. The news came from NEK CEO Dimcho Kanev who broke it at the Bulgarian Economic Forum. If the 2000-MW Belene plant is completed, by 2020 Bulgaria's electricity consumption will be secured, and the country will have free quantities of electricity for exports, says a NEK analysis presented at the Bulgarian Economic Forum in Sofia on Thursday. One of the scenarios described in the report says that Bulgaria's energy consumption will not change over the next 10 years because improvements in energy efficiency; another scenario says that it might grow by about 1.4% annually, which means it could reach 42 billion kW/h by 2020. At the same time, if the Belene NPP is completed by that date, Bulgaria will be producing about 52 billion of kW/h per year, meaning that 10 billion kW/h could be exported. Recently Serbian Prime Minister Mirko Cvetkovic and Energy Minister Petar Skundric have declared Serbia's interest in holding a 10-percent share in Bulgaria's second nuclear power. However, on second thought they decided that Participation in Bulgaria's second nuclear power plant at Belene will be unfeasible for Serbia, according to an article of Serbian newspaper Politika.
Source: Standart (26.11.2010)

Nabucco Pours EUR 400 M in Bulgaria's Economy Bulgaria's economy will gain about 400 million euro in direct investments from the construction of Nabucco gas pipeline through its territory. The project will open several hundred jobs during the construction works and another one thousand indirectly. Apart from that, Bulgaria will profit from the revenues in the budget from tax and fees and the profit of the Bulgarian Energy Holding which is a shareholder with 16,66%, informed Christian Dolezal, spokesperson of consortium Nabucco Gas Pipeline International. It is expected that the first contracts with the gas suppliers from Nabucco be signed by the middle of 2011. Nabucco gas pipeline will start operating in 2015.
Source: Standart (26.11.2010)

Russian Gambit for Belene A bird in the hand is worth two in the bush. This saying should be kept in mind by all politicians who are to conduct important and tough negotiations, the outcome of which could cost billions. Tomorrow, Sofia and Moscow are to con duct hard talks over the construction price of Bulgaria’s second NPP in the Danube town of Belene. The Bulgarian delegation will try to lower the initial construction price set by Russia during tomorrow’s meeting with Rosatom CEO Sergey Kirienko. Thursday, he told Bulgarian journalists in Moscow that it was almost impossible to bring down the power plant’s construction costs below 6.4 billion euro, but the calculations of the Bulgarian experts have shown otherwise. For Russia Belene project is not just a construction work that has to be completed and respectively paid. This nuclear plant in Bulgaria is much more important - it would be Russia’s presentation card in the European Union after the democratic changes in the Eastern Bloc and the upturn of nuclear energy. Because of that the Russians will insist the project be implemented by all means; even if they have to yield and agree to a lower price. Bulgaria’s premier Boyko Borissov has repeatedly voiced the desire of this country to have the cheapest and safest nuclear power plant and it was confirmed again during the meeting with Vladimir Putin on November 13 in Sofia. Bulgaria will have to negotiate the final price as soon as possible, experts maintain. If the agreement is inked during the visit of Sergey Kirienko in Sofia this Tuesday the project will at last have a green light. Thus potential investors will be able to finalize all calculations and the funds for the construction of the new NPP will be found at last.
Source: Standart (29.11.2010)

Bulgaria could lose EU funding on cross-border pipelines - report Bulgaria could lose EU funding allocated for the construction of cross-border pipelines with neighbouring countries unless the country speeds up the projects' execution, Vladimir Uruchev, member of the European People's Party, said as quoted by news agency BTA. "I appeal to companies selected to implement the projects to do everything necessary in the rest of the year in order to retain the funds provided by the European Union," Uruchev told an international conference in Thessaloniki. The construction of the interconnection gas links were given strong impetus after the gas crisis in the winter of 2009. Bulgaria was also granted European funds as part of the financial and economy recovery plan, which was agreed last year, Uruchev noted. Recently, the EU adopted a directive concerning measures to safeguard security of natural gas supply. Under the mechanism, each member state should ensure continuous gas deliveries to consumers even in the event of a supply disruption at the single largest gas infrastructure, which will result in the creation of a sole EU gas infrastructure, transporting gas in both directions on cross-border interconnections. Earlier this week, Bulgaria gave the go-ahead to a joint venture with Greece, which will build and operate a gas pipeline connecting the two countries. Meanwhile, Brussels agreed to grant Bulgaria EUR 45 million under the European Energy Recovery Programme to build the link, while another EUR 10 million were earmarked for the gas pipeline with Romania.
Source: Dnevnik (29.11.2010)

Finnish and French Investors Join Belene Project Bulgarians and Russians made a breakthrough on Belene nuke project negotiations in Sofia yesterday. Although the situation was defined as dead-end by both sides because of the dispute on the fixed price of the project, PM Boyko Borissov and Rosatom chief Sergey Kiriyenko found a solution. The way out is a memorandum - signed late afternoon yesterday - for establishing a project company on Belene NPP. Its members include Bulgaria, Rosatom and two new investors - the French Altran Technologies and Finland Corporation Fortum. Thus the apple of discord - the fixed price of the nuke project - will be negotiated by the investors in the project company. According to the Russians the price could not drop below 6.3 billion euro. We made a mistake with the price of Belene NPP, Rosatom president Sergei Kiriyenko admitted yesterday morning. The surprising statement came after an ultimatum made by PM Borissov who said he would sit at the table for negotiations if Mr. Kiriyenko admitted that the 4 billion euro price for Belene was not realistic when the contract with the National Electric Company was signed. Initially Mr. Kiriyenko refused to comment on the statement of PM Borissov but after minutes he stated that at the signing of the contract with Atomstroyexport for the contractor of the project was made a mistake inclusive on behalf of the Russian side. The mistake was made with the writing down of a price of 4 billion euro without specifying how the inflation rates in the different countries where the equipment would be made would influence the price. Thanks to this mistake the Belene project was seriously delayed. A bit later the Minister of Economy and Energy aired the names of the investors. The names were confirmed by Kiriyenko. To his words, initially Bulgaria will keep its majority share of 51% in the new company. He asked for 43% of the shares for Rosatom. The other two investors will at first hold 1% each and the memorandum will explicitly state that at a later stage it would be possible that they could increase their share. The project company would remain open for new investors like Serbia for instance which is likely to obtain between 5 and 10% of the project. Currently negotiations are held with four or five potential investors. Kiriyenko repeated the Russians' offer to cover all the initial financing of the project. Within four months the main issues on the creation of the project company would be clarified. It is expected that Belene NPP will start operating in 2016.
Source: Standart (01.12.2010)

Bulgaria before Brussels: Nabucco Guarantee Outside the State Budget Bulgaria's Prime Minister, Boyko Borissov asked the European institutions that the figures of the bank guarantee that Bulgaria would provide for the construction of Nabucco gas pipeline would not be included in the calculations of Bulgaria's budget deficit. "If we now provide a guarantee of 2 billion euro, the budget deficit will immediately exceed 3 billion," Borissov explained at the inauguration of the Energy without Borders forum. He also said he believed the implementation of the project could be attempted at more accelerated rates. Later the managing director of the international company Nabucco Pipeline International, Reinhardt Mitschek said that indeed the project share holders, Bulgaria among them, would have to provide bank guarantees for its implementation. The sum would, however, reportedly vary between 1.7 and 2 billion euro depending on the stage of the project implementation. The highest of guarantees is expected in 2015 when the first gas is planned to start flowing in through the pipe. Then with the profit from the pipe, the construction costs will be gradually covered and the sums on the guarantees will lower till diminishing. "I am sure all countries will be able to provide the bank guarantees," Mitschek said.
Source: Standart (01.12.2010)

Bulgaria, Greece to Have Full Gas Interconnection 2013 Bulgaria and Greece have signed Tuesday a contract for interconnection of their natural gas networks that must be built by 2013, announced Bulgarian Minister of Energy Traicho Traikov. Speaking after the "Energy without Frontiers" forum held in Sofia, Traikov said that an agreement has been concluded between the Bulgarian Energy Holding and the Greek company IGI Poseidon. Each of the two companies will have a 50% share of the project, which is estimated at EUR 160 mln, 45 of which come from EU funds. "This is an important step forward toward the actual diversification of gas supplies for Bulgaria," said the Minister of Energy and Economy. He vowed that the first amounts of gas will flow in the interconnection pipe early 2013. The connection will run between Haskovo in Bulgaria and Greece's Komotini. Earlier at the "Energy without Frontiers" forum it was announced that Bulgaria and Romania are now ready for the road map for a similar gas network link (between the cities of Russe and Giurgiu). The project, sealed between Bulgartransgaz and Romanian Transgaz must enter its investment phase by the end of 2010. The EU has planned a total of EUR 8.9 mln within its European Energy Program for Recovery for the project. A further EUR 11 mln has to be invested by Bulgartransgaz. The Bulgaria-Romania interconnection is designed to be 23.8 km long and to have a maximum capacity of 1.5 bln cubic meters of natural gas each year.
Source: econ.bg (01.12.2010)

NPP Belene Deal Is like a Cat in a Bag How much does a nuclear power plant cost? Only experts could answer this question after serious calculations. And even if the plant’s price is counted in billions, it is hard to imagine that anybody would miscalculate it by two billion levs. Potential investors in Belene NPP are asking themselves if a mistake inflating the price of an investment project by as much as 50% has been made only by chance. This question is also important to the Bulgarian taxpayers, who might have to pay off huge compensations if the deal collapses. On Tuesday, PM Boyko Borissov blamed his predecessor Sergey Stanishev and President Georgi Parvanov for having signed a contract pinning the plant’s price at 3.997 billion levs which, Borissov says, is too much. The real price of the plant is hidden in the inflation index, which has not been specified in the deal. This became clear from a statement of Rosatom President Sergey Kiriyenko. "We made a mistake not specifying the inflation rate which should be taken into consideration when calculating the project’s final price,” he said. It is still a moot question, however, whether this was a premeditated mistake. Be as may, but it will cost the investors of the second Bulgarian nuke over 2 billion euro, comment investment experts They mean 6.298 billion, a sum that was mentioned in the memorandum on the construction of Belene. The price is not final and is a subject for further discussions between the investors. However, such raise of costs is detrimental to any project, because when a decision is taken to build something every participant in the project is supposed to have made preliminary calculations and figured out when investment pay off and profits, reaped. So if at a certain point the project’s price rockets everyone would start pondering whether it is worthwhile to keep on.
Source: Standart (02.12.2010)

We Have Only Cleared the Table for Belene NPP Traycho Traykov, Minister of Economy, Energy and Tourism Mr. Traykov, has Bulgaria benefited from the signed memorandum on Belene NPP? - We can hardly use the word ‘benefit’ to describe the effect of Tuesday’s memorandum. Rather, it provided a good starting point of the negotiations on deal. In fact what we have now is the two sides’ agreement as regards the principles for the establishment of a joint company for the implementation of the Belene project. However, this is still not a real agreement on the establishment of such a company. Second, the memorandum clearly states that Sofia will hold the golden share in the future joint company and third, two big European companies have already shown interest in the project and will most probably become part of the process of its realization. The question about drawing in other possible investors remains open for the time being. In a nutshell, the memorandum has provided a good road map, but no particular decision on the project has been reached yet. - Bulgaria keeps its majority stake in Belene, but will possible new investors in the project, such as Fortum, Altran and some Serbian companies, be allowed to acquire shares in the power plant? - After the Tuesday negotiations the expectations are that the Russian side will cover the costs. The memorandum was published yesterday night on the front page of the Council of Ministers’ website, so you probably saw that Bulgaria once again has confirmed that it insists on the majority stake in the project. - What share should Bulgaria hold in the Belene NPP project to guarantee that it will be profitable for the country? - If Belene doesn’t yield money it won’t be built at all. Otherwise it would be madness to start this project. I think that all shareholders follow this logic. Of course, we consider it from many aspects, but the commercial profit is the key argument we have to bear in mind. - What were the Bulgarian trumps during the negotiations and do we have any other up a sleeve? - The actual negotiations have not started yet. So far we have just cleared the table for further talks. We have at least to know the results of the consultants’ work on the HSBS project to form a clear opinion about the project’s cost effectiveness and the relative price of each stake. This will give potential investors a better idea about the overall layouts.
Source: Standart (02.12.2010)

RES Act might be ready in November 2011 The Renewable and Alternative Energy Sources and Biofuels Act will not be adopted earlier than November 2011, predicted Kostadinka Todorova, adviser to the Parliamentary Committee on Economic Policy, Energy and Tourism at a conference dubbed "Photovoltaics in Bulgaria - Prospects for Solar Development''. Bulgaria had to have an effective document by December 5, said Niklola Gazdov, Chairman of the Bulgarian Photovoltaic Association. The country is already in breach of EU requirements. The penalties for each postponement vary between ˆ250 and ˆ610 a day, while the lump-sum fine could reach ˆ770,000, pointed out Todorova. The current draft law is creating administrative impediments. It provides for 11 months of waiting for permission for accession, said also Todorova. By the end of 2010 (in the last ten years alone), the PV industry will reach 38 GW installed capacity in Europe. In Bulgaria, its industrial output is expected to be 15-20 MW, which is very low, announced Pieterjan Vanbuggenhout, Business Analyst at the European Photovoltaic Industry Association (EPIA). If administrative barriers are not abolished, Bulgaria will not be able to develop its potential of 700 MW by 2014 and will only reach a 300 MW capacity. Technological developments and the cost rise of conventional power after 2013 will reduce the price of solar electricity and its levelling with that from other sources. Effectiveness will increase over 22%, while costs could reach 9-12 eurocents per Kwh.
Source: Class (07.12.2010)

Bulgaria's Largest Thermal Power Plant under Investigation The second biggest energy company in Bulgaria, the Maritsa East 2 Thermal Power Plant, is under investigation for law violations, according to Plovdiv's Regional Prosecutor's Office. The violations have allegedly cost millions of Euro to the Bulgarian state. A reason for the investigation is reportedly the deal between Maritsa East 2 and the Japanese company Mitsui, which should have rehabilitated the plant's 4 older power units. Due to a delay in Mitsui's work, though, the plants former executives had to pay a EUR 8 M forfeit. Maritsa East 2 is the largest thermal power plant in the Balkans. It has a total installed capacity of 1,465 MW and generates 30 % of Bulgaria's electricity. Maritsa East -2 consists of eight generating units, two of which are equipped with flue gas desulphurization plants. Maritsa East 2 is wholly state-owned. It is a subsidiary of the Bulgarian Energy Holding.
Source: money.bg (07.12.2010)

Austrian EVN to become owner of the Gorna Arda HPC “Within 4 months, the Austrian EVN company expects to receive a 70% stake of the Gorna Arda hydropower complex (HPC),” said yesterday Jorg Sollfelner, Regional Manager at EVN. He explained that the shares of the Turkish CCG Insaat Sanayi Ytirim Ve Turizm AS have not been transferred to EVN yet. The company is the successor to the bankrupt Ceylan Holding which participated with NEK (National Electricity Company) in the Gorna Arda HPC. The Turkish company has to transfer its share to EVN and, later, the Austrians are expected to raise the capital of Gorna Arda, in order to reduce the participation of NEK to 30%. The construction of the cascade is expected to cost less than ˆ500 mln. “At present, we are negotiating with the public provider on the redrafting of the project of the cascade in order for less concrete to be used,” said Sollfelner. EVN's proposal is for the construction of only 2 dams - "Madan" and "Ardino”, and for the “Sarnitsa” dam not to be built. “By November next year, the co-generation unit in the Central-North TPP (Thermo-electric Power Plant) of EVN – DHC (District Heating Company) Plovdiv should be completed,” promised experts from the company. EVN owns the electrical grid in south-eastern Bulgaria as well. Some BGN 100 mln will be invested in the new unit and the contract on the gas supply has already been signed with Bulgargaz. The Austrian company plans to invest the amount of BGN 113 mln in its electrical grid next year. The company has resources to increase its investment by BGN 100-130 mln, if the State Energy and Water Regulatory Commission approves its program.
Source: Class (08.12.2010)

Macedonia Invests EUR 400 M in NPP Belene According to information of the Bulgarian news agency BTA, Macedonia has expressed readiness to invest 350 or 400 million euro in the construction of Bulgaria’s NPP Belene. The author of the publication quotes a statement of Prof. Atanasko Tunevski, who is part of a working group of energy experts with the Macedonian government. Tunevski’s statement comes after Bulgaria’s ambassador in Skopje officially extended an invitation to the Macedonian authorities to join in the realization of the strategic energy project. As the power plant’s construction is expected to coast about 6.3 billion euro, Macedonia’s share will be 6.5% of the venture’s capital. According to Prof. Tunevski, Macedonia’s participation in NPP Belene is a good opportunity, because the investment could be returned in 13 or 14 years. However, Tunevski’s colleague, Prof. Konstantin Dimitrov said that Macedonia had better construct its own nuclear power plant rather than pour money in Bulgaria’s second one.
Source: Standart (09.12.2010)

NEK owes BGN 60 mln to Kozloduy NPP The National Electric Company (NEK) owes BGN 60 mln to the Kozloduy nuclear power plant," announced the company’s Executive Director, Krassimir Parvanov. According to him, repayment of the debt by September 2011 has already been agreed with Kozloduy. Parvanov added that by the end of October 2010 the company’s profit amounted to BGN 150 mln (before payment of due taxes) while during the same month of last year, losses amounted to almost BGN 14 mln. NEK expects to post BGN 130 mln in profits for 2010. About 20% of this profit comes from export of electricity. NEK believes it will export 7.5 billion kWh of electricity by the end of 2010 and 500 MW to Turkey by the end of March 2011. Trade has slowed down due to a technical problem. NEK has receivables amounting to BGN 246 mln from the Kremikovtzi steel mill, from Chimco of Vratza and the cast iron factory in Ihtiman. The company reported a 14% drop in electricity consumption from the power utilities supplying energy to households. Nevertheless, electricity consumption is expected to increase by 1.5% as a whole in 2010 and by some 5-8% in 2011. NEK’s total liabilities, which stood at BGN 1 bn in the summer, decreased considerably. The Tsankov Kamak hydro power plant is to be commissioned at the end of March 2011. The plant is currently operating in trial mode and its final price will be ˆ540 mln. "NEK will invest BGN 27 mln next year for the consolidation of Belene NPP’s site. Experts from Russia will visit Bulgaria this week to hold negotiations on the price of Belene," added Parvanov. According to him, our country wants to retain its majority stake in the project with a 20% contribution in kind – the investments made so far. NEK projects to invest BGN 130 mln in rehabilitation of its network next year.
Source: Class (13.12.2010)

Sofia, Moscow Wrap up Deal on South Stream JV Sofia and Moscow have finalized the deal on the establishment of 50/50 joint stock company that will design, build and operate the Bulgarian section of the future South Stream gas pipeline. "Russian gas giant Gazprom has received a 50% stake in South Stream Bulgaria, the joint venture operating the Bulgarian sector of the South Stream pipeline project, which will pump gas to Southern and Central Europe," Moscow-based news agency RIA Novosti said, quoting a Gazprom statement. The South Stream, a joint project of Gazprom and Italy's Eni, is expected to carry 63 billion cubic metres of Russian natural gas per year under the Black Sea to Europe, starting in 2015. Bulgaria has already shortlisted five candidates to conduct a feasibility study for the section of the South Stream gas pipeline on its territory. The feasibility study is expected to be completed in February or March of next year and will form the basis for taking the final investment decision. Gazprom said last month it expects the cost of the South Stream gas pipeline to reach around 15.5 billion euro ($20.5 billion) calculated at current prices.
Source: Standart (17.12.2010)

Bulgaria Might Kill Burgas-Alexandroupolis Pipeline by Not Paying Dues Bulgaria has failed to pay the EUR 6 M that it owes as its contribution to the joint project company with Greece and Russia, which is supposed to construct the Burgas-Alexandroupolis oil pipeline. Even though at the last meeting in Amsterdam of the shareholders of the Trans-Balkan Pipeline company, the joint Bulgarian-Greek-Russian venture that should construct and manage the pipe, the Bulgarian government pledged to pay its dues by December 15, 2010, it has failed to do so, revealed Mikhail Barkov, Vice President of the Russian oil company Transneft. "They did not keep their word, and they are jeopardizing the entire project. This is a fact," Barkov stated making it clear that the failure of the Bulgarian government to make its financial contribution could result in the freezing of the pipe. He revealed that as a result Greece has made the payment of its own contribution to the joint project company conditional on the payment by the Bulgarian government. (Darik)
Source: Dnevnik (17.12.2010)

Finish Investors Backtrack on Belene The Finish company Fortum Corporation, which joined in Bulgaria's NPP Belene project as an investor, has now reported it will not take more than one per cent of the plant. This becomes clear from a statement of Mr. Tapio Kuula, President and CEO of Fortum Corporation, quoted by the Russian e-issue www.oilru.com. This is a serious backtrack from the company's initial intention to acquire up to 25% of Bulgaria's second nuclear power plant. Fortum Corporation, together with France's Altran technologies, signed a memorandum with Bulgaria's energy utility NEC and Russia's Rosatom on November 30, 2010 in Sofia, according to which the two companies take a commitment to acquire at least one per cent of Belene's shares initially, while at a later stage their share could grow up to 25%, at the expense of the Russian or the Bulgarian share in the plant, while the French company's share could increase to five per cent. Initially, Bulgaria's share in the plant will be 51% and Russia's - 47%.
Source: Standart (22.12.2010)

Wikileaks: RWE was apprehensive about the safety of NPP Belene German company RWE gave up on its involvement in the construction of the Belene NPP because of its apprehensions about the safety of the nuclear plant, high costs, financial problems, as well as doubts that Bulgarians will not work in conformity with European labour practises, stated a secret report of former U.S. ambassador to Bulgaria, Nancy McEldowney, circulated by the WikiLeaks website and quoted by The Guardian Daily. The document was meant for Richard Morningstar, US Special Envoy for Eurasian Energy. The Belene NPP project itself could incur further costs for Bulgaria in the long run, explained McEldowney in the report. She said that construction works on the NPP continued despite the experts' apprehensions on the safety and quality of the facility. RWE was selected by NEK (National Electricity Company) as a strategic investor in the project and would have received a 49% stake but, subsequently, withdrew due to funding problems. The company's involvement in such a discredited project, which "was reeking of suspicious transactions", even before RWE had purchased its share, could have injured its reputation. The document published by Wikileaks posted that, in 2009, everyone was in great haste to launch the construction of the NPP and for RWE to remain involved in the project. The German company was kept in the dark on most technical problems concerning the plant. At that time, experts expressed "serious concerns" about the plant, should construction safety practises continue be neglected. The information about the project was also not disclosed completely to the Bulgarian side, said to McEldowney Galina Tosheva, former head of the Bulgarian Energy Holding (BEH). According to her, our country was persuaded to receive a Russian loan of ˆ3,8 bn for the construction of the NPP. She explained that she expected Russian Prime Minister Vladimir Putin to "dictate the lending terms and conditions directly to former Prime Minister Sergei Stanishev". Yesterday, Tosheva was unavailable for comment.
Source: Class (22.12.2010)

Serbia's participation in Belene nuke project lacks action Serbia's participation in the construction of Bulgaria's Belene nuclear power plant (NPP) has not been brought into action so far, the country's environment minister Oliver Dulic said as quoted by news agency Beta. The country's participation in the project has been subject to more discussions by media than by the government, Dulic said in an interview, adding that Serbia should not embark on building nuke plants before utilising all renewable energy sources available. According to the minister, the state also needs to examine options to cover its power deficit with the help of green energy, as he sees a huge potential in power generation from biomass and water. Dulic further noted that the ministry would be against the use of nuclear power in Serbia before all renewable energy alternatives were not put into use. Serbia's energy minister Petar Skundric has repeatedly confirmed Belgrade's willingness to join the Belene project, expecting Bulgaria to present a study on the facility's construction. In late November, Bulgaria sealed a memorandum of understanding (MoU) on the creation of a project company for the nuke plant. Under the agreement, Bulgarian utility Natsionalna Elektricheska Kompania EAD (NEK) will hold a majority stake in the project, Russian State Atomic Energy Corp (Rosatom) will control up to 40%, while Finnish energy company Fortum Oyj and French technology consultancy Altran Technologies will each own 1%.
Source: Dnevnik (28.12.2010)

Bulgargaz to post a loss of BGN 30 mln for 2010 “Bulgargaz will post a loss of over BGN 30 mln for 2010,” the company’s Executive Director Dimitar Gogov said yesterday. According to him, this is mainly due to the heavy regulations imposed by the State Energy and Water Regulatory Commission (SEWRC). The company has a lot of receivables, most of them from the central heating utility in Sofia. According to Gogov, the liabilities of the Sofia company have tripled since the beginning of the heating season and stand at BGN 100 mln. “If the company continues to accrue debts as it has until now, in the middle of the winter, the gas supply to Sofia might be stopped,” Gogov stated. Bulgargaz will hold a meeting with the new managers of the company at the beginning of next week. The public gas supplier will limit today the supply of natural gas to Shumen because of its problems with the local central heating company whose liabilities to Bulgargaz amount to BGN 15.5 mln. In the last two months alone, its debts totaled BGN 2.3 mln. The workers of the network operator Bulgartransgaz were not allowed yesterday to stop the gas supply only to the Shumen central heating utility. Therefore, it will be limited from the gas station near the town. This could affect fuel supplies to the four private companies in the region – the gas distribution company Black Sea Technology Company, and the private companies Tesy, Contax and Uspeh Metalprint SSB. “This will happen if the Shumen central heating utility does not stop using the gas intended for other companies,” said Gogov. According to him, the gas supply will be limited to the necessary quantities of fuel for the private companies with the exception of the heating utility. “Bulgargaz is not a bank and cannot credit the operation of other companies,” stated Gogov. He added that Bulgargaz had waited for the heating utility to remit its first instalment, as pursuant to the agreement with the Municipality of Shumen from end-November, but this has not happened. The gas supplier is ready to resume regular gas supplies only if the heating utility pays at least BGN 2.3 mln.
Source: Class (30.12.2010)