The state returns to Heat Supply – Sofia Yet another transfer of ownership on Heat Supply – Sofia between the state and municipality is about to be made. This time the idea is for the Bulgarian Energy Holding (BEH) to acquire a minority share in the company, the Executive Director of Heat Supply – Sofia Stoyan Tsvetanov said. The goal is for the Sofia heating utility to settle a debt of over BGN 200 million to BEH from end-2008. BEH will acquire a minority stake, or up to 49%. Instead of the constant transfer of ownership, the company could have been privatised a long time ago. Thus the necessity to allocate state funding that placed the Sofia heating utility in a privileged position compared to other companies in the sector would have been avoided. It was in 2007 that French Dallda, owner of Heat Supply – Varna, and Czech CEZ, which privatised the Sofia power utility and TPP Varna, were interested in buying the distressed company. There were many other offers throughout the years, but none were accepted. According to Tsvetanov one of the reasons was that this would have increased the cost of the service due to the investments that would have been made.
Source: Capital (03.01.2013)

Between 12 and 15th January Fitch is expected to announce Bulgarian energy holding’s rating. In that way, till the end of February and the beginning of March the company will be ready to list bonds for EUR 250 million. If market conditions are favourable, sum may go up to EUR 400 million.
Source: 24 chasa (07.01.2013)

Bulgarian Energy Holding may acquire minority stake in Heat Supply-Sofia at the expense of some of the company's debt for gas. But this is only one of the variants of solving the problem with the debt of the company to Bulgargaz, said Economy Minister Delian Dobrev. The aim of the deal is not to change the ownership of Heat Supply-Sofia but to provide additional funds for the company to invest in projects for modernization and new cogeneration facilities, he added. Currently, Heat Supply-Sofia has prepared about 20 different projects that are looking for options for financing, Sofia Mayor Yordanka Fandakova added. However, the most important task for the company at the moment is to ensure the heating season, she said. Sofia mayor stressed that the most important for the future of Heat Supply-Sofia are investment opportunities. Addressing the obligations of the company is among the major problems.
Source: Standart (08.01.2013)

Nabucco Pipeline Route Finalized June 2013 The Shah-Deniz-2 Consortium is expected to decide on the exact route of the Nabucco pipeline in European territory by the end of June 2013, Bulgarian Energy Holding President Mihail Andonov said. The agreement between Nabucco International and the potential investors – shareholders in Shah-Deniz-2, is to be signed on January 18th. If the companies in the consortium Shah-Deniz-2 choose Nabucco, as of 2018 Bulgaria will be receiving two billion cubic meters of Azeri natural gas per year through the gas link with Turkey.
Source: Standart (14.01.2013)

Bulgarian Energy Expert Accuses HSBC of Plagiarism "The report of UK's HSBC is a compilation of passages, plagiarized from previous analyses, reports, textbooks and theses," Bulgarian energy expert and former program coordinator of the nuclear energy department of the International Atomic Energy Agency Yanko Yanev told the Standart. He took part in a conference on the national nuclear energy referendum, organized by the Bulgarian nuclear forum Bulatom. Yanev logically concluded that the price of two million euro that the Bulgarian government paid for HSBC's report is unacceptable and unjustified. "The preparation of such an analysis can be carried out by just two experts and shall not take longer than two months. Such a report should cost not more than 20,000 euro," Mr Yanev commented. At the same time the report made by the HSBC cannot serve as a base for whatsoever investment decision, as is written down on the last page of the report by the HSBC itself. The report reads that the data for the report had been presented by the private company NARA (Nuclear Action Reliability Assessment) and HSBC did not bear any responsibility for the credibility of the figures in it. At the same time the remarks in the report read that the it is not a kind of advice for making or rejecting whatever investment or political decision," Mr Yanev who has a copy of the report explained. Mr Yanev also commented that HSBC does not have the capacity and expertise for the elaboration of such a report and due to this it was expelled from India some time ago.
Source: Standart (16.01.2013)

Bulgarians Say “Yes” to Belene Nuke The national referendum on the development of nuclear energy projects in Bulgaria had a turnout of just twenty percent. Still, two-thirds of the 1,400,000 Bulgarians who went to the polling stations said “yes” to the future development of nuclear energy projects in the country and the issue of the construction of NPP Belene will now be debated in Plenary Hall. For the first time in Bulgaria’s democratic history, the vote was not marred by corrupt practices such as vote buying or election tourism. The turnout was also low in the regions with predominantly Muslim population, while 23% of the electorate of the ruling political party, GERB, voted for the construction of NPP Belene, despite the explicit instructions of PM Boyko Borissov. Similarly, a large part of the electorate of Meglena Kouneva’s political formation Bulgaria for Citizens went to the polling stations in spite of her call to boycott the referendum, and even voted for Belene. As it was expected, both the government and the opposition were pleased with the outcome of the referendum - the former pointed the low turnout as a sign of the people’s low interest in the development of nuclear energy projects in Bulgaria, while the latter said that it was a victory, even if not a landslide one.
Source: Standart (28.01.2013)

Sofia and Athens Become Gas Export Competitors In the near future Sofia and Athens may become competitors in the export of Caspian natural gas to Europe. This emerged after the end of Gas perspectives: First regional gas conference, held yesterday at Sofia's Sheraton Hotel Balkan. Greece is planning to receive natural gas from a number of sources in Cyprus and Azerbaijan, as well as from liquefied gas terminals, and export it to Europe, using the interconnection with Bulgaria. This became clear from a statement of Dimitrios Manolis, International Projects Monitoring Director at DEPA S.A. However, Bulgaria's Bulgargaz is also eyeing opportunities to export natural gas to Europe, judging by the statement of its CEO, Mr. Dimitar Gogov. He linked the company's future to an expansion on the European markets. "We are in negotiations with Shah Deniz 2 for the maximum capacity share of ten billion cubic meters of natural gas 2019," Gogov said.
Source: Standart (06.02.2013)

Bulgarian Parliament Confirms Decision to Stop Belene NPP Construction Bulgaria's Parliament confirmed the country's decision to abandon the construction of Belene NPP. The vote was prompted by a recent referendum on the construction of a new nuclear power plant in the country. As provided by the law, the results of the recent referendum should be put back on the Parliament's agenda, as voters’ turnout slightly exceeded 20%. 61% of the voters said "yes" to the construction of a new nuclear power plant; 39% cast a "no" ballot. The right-wing Blue Coalition and the ruling center-right GERB opposed plans for the construction of Bulgaria's second nuclear power plant, while the left-wing Bulgarian Socialist Party and the far-right nationalist Ataka strongly supported the project. Ahead of the Tuesday sitting, the Blue Coalition tabled a proposal to stop the project for good, while BSP countered with the exactly different attitude. 114 MPs voted in favor of the Blue Coalition's proposal, while 40 were against.
Source: Standart (28.02.2013)

Fitch Rates Bulgarian Energy Holding BB+, Stable Outlook Fitch Ratings has assigned Bulgarian Energy Holding EAD (BEH), Bulgaria's largest electric and gas utility company, a long-term foreign currency issuer default rating (IDR) of 'BB+' and long-term local currency IDR of 'BB+' with stable outlooks. The ratings reflect BEH's and its 100%-owned subsidiaries' (BEH group) dominant position in the country's electricity and gas markets, its strong links with the Bulgarian state ('BBB-'/Stable) and evidence of tangible state support. The ratings also incorporate the weakness of the Bulgarian regulatory framework, corporate governance limitations and the group's large capex plan for 2013-2015 that will likely increase its financial leverage. Future developments that could lead to positive rating actions include: FFO net adjusted leverage below 1.5x on a sustained basis, for instance due to a lowered capex plan and an improved financial performance, including liquidity management and debt maturity profile; rising and more predictable remuneration for regulated activities; progress in the liberalisation of the electricity market through a rising share of market-based pricing in the generation sector, as well as a stronger corporate governance. Future developments that could lead to negative rating action include: FFO net adjusted leverage exceeding 3x on a sustained basis, for instance due to financial underperformance or substantial payments related to the ongoing litigation concerning the terminated Belene nuclear project; weakening links between BEH and Bulgaria, for instance, significant reduction of the share of state guaranteed debt and/or lack of additional tangible support if needed; a negative change in Bulgaria's ratings; or a failure to maintain sufficient liquidity.
Source: Capital (04.03.2013)

At an extraordinary sitting of the Consultative Council with the outgoing Energy Minister Delyan Dobrev on Monday, the minister ordered the Electricity System Operator (ESO) to take advantage of its right to limit renewable energy production whenever the electricity distribution network is endangered. The Council ordered for the country’s cold reserve to be reduced by 200 MW as of 1 April in order to lower the losses of the ESO, that is in a very deteriorated financial state. The head of the Bulgarian Energy Holding Mihail Andonov explained that the reduction will be made at the expense of the cold reserve of TPP Varna (owned by CEZ) and TPP Maritsa – Iztok 2. Meanwhile, it transpired that as of 5.30 p.m. on Tuesday there are new electricity prices in Bulgaria. CEZ clients now pay an average 7.17% less. The Bulgarian Energy Holding (BEH) and the Economy Ministry have begun negotiations with the two US owners of TPPs operating in Bulgaria - AES and Contour Global, regarding an electricity price reduction, the BEH Executive Director Mihail Andonov announced Tuesday. In his words, the two TPPs are willing to make discounts, but require guarantees that the next government will not ask for a further drop of prices, the Trud daily writes. The three power utilities will conduct an extraordinary report on the measurements of electric meters in relation to the average 7% electricity price cut as of 5 March. The companies will accept data on power consumption provided by clients. CEZ set a deadline until 11 March, EVN – until 8 March.
Source: Standart (06.03.2013)

Bulgaria's state energy holding company, which groups the country's top energy assets, plans to launch within days a procedure for tapping international markets. The group aims to issue EUR 250 M worth of bonds, Chief Executive Mikhail Andonov announced. The money will be used for BEH participation in various projects such as "Nabucco" and gas interconnections with Turkey and Greece. Meanwhile the energy holding announced plans to seek EUR 250 M syndicated loan to refinance the existing debt to BNP Paribas for the nuclear power plant project at Belene. The previous Socialist-led government hired in 2007 BNP Paribas SA to arrange a EUR 250 M loan, assess the financial risks and prepare tenders to select banks for funding the project at the Danube river town, whose price tag towered from EUR 4 B to EUR 10 B. NEK's poor results, triggered by a fall in power consumption, however forced it to breach the conditions on the loan, making it callable. BNP Paribas SA, France's largest bank by market value, ditched the project in February 2010. Fitch, the rating agency which was surprisingly selected by the state energy holding company, assigned it at the beginning of March a long-term foreign currency issuer default rating (IDR) of 'BB+' and long-term local currency IDR of 'BB+' with stable outlooks. The ratings reflect BEH's and its 100%-owned subsidiaries' (BEH group) dominant position in the country's electricity and gas markets, its strong links with the Bulgarian state ('BBB-'/Stable) and evidence of tangible state support. Standard and Poor's rate Bulgaria at investment BBB grade, Moody's – at Baa2 by Moody's and Fitch - BBB-. Bulgaria officially broke up with Fitch in March 2010 in a bid to cut costs and amid a flood of negative assessments and warnings, which Sofia slammed as manipulation of public opinion and blackmail par excellence. It is not right if a small country such as Bulgaria pays BGN 300,000 each year to be rated by yet another rating agency, the finance ministry commented back then. The statement echoed the comments of local analysts, according to whom the gloomy forecasts for Bulgaria that Fitch Ratings had lately begun to churn out were in response to the state decision to suspend its contract with the agency. Insiders say outgoing Finance Minister Simeon Djankov was surprised by BEH decision to contract Fitch rating agency, but was assured its bid was the best. BEH was incorporated in 2008 with a decision of the previous Socialist-led government. BEH EAD is a shareholding company with 100% state owned participation. The Holding includes Mini Maritsa Iztok EAD, Maritsa East 2 TPP EAD, Kozloduy NPP EAD, NEK EAD, Electricity System Operator EAD, Bulgargaz EAD, Bulgartransgaz EAD and Bulgartel EAD. All companies, brought together in the holding structure, preserve their operational independence and licenses, as they are all owned and directly subordinated to the corporate center BEH EAD. The Bulgarian Energy Holding EAD is one of the largest companies in the region, and national energy leader. Bulgaria tapped last summer international markets to raise funds to repay the first tranche of about EUR 835 M (USD 1.07 B) in 11-year Eurobonds, which matured on January 15, 2013. The next tranche however is due in 2015 and Sofia may be forced to go to the markets again.
Source: Dnevnik (07.03.2013)

Bulgaria's Energy Holding Takes Out EUR 250 M Loan Bulgaria's state energy holding company, which groups the country's top energy assets, has already launched a procedure for seeking a EUR 250 M loan, the energy minister announced. After that the company will tap international markets, aiming to issue EUR 250 M worth of bonds, Economy and Energy Minister Delyan Dobrev announced. It was not immediately clear whether the money will be used for BEH participation in various projects such as "Nabucco" and gas interconnections with Turkey and Greece or to refinance the existing debt to BNP Paribas for the nuclear power plant project at Belene. The previous Socialist-led government hired in 2007 BNP Paribas SA to arrange a EUR 250 M loan, assess the financial risks and prepare tenders to select banks for funding the project at the Danube river town, whose price tag towered from EUR 4 B to EUR 10 B. NEK's poor results, triggered by a fall in power consumption, however forced it to breach the conditions on the loan, making it callable. BNP Paribas SA, France's largest bank by market value, ditched the project in February 2010. Fitch, the rating agency which was surprisingly selected by the state energy holding company, assigned it at the beginning of March a long-term foreign currency issuer default rating (IDR) of 'BB+' and long-term local currency IDR of 'BB+' with stable outlooks. The ratings reflect BEH's and its 100%-owned subsidiaries' (BEH group) dominant position in the country's electricity and gas markets, its strong links with the Bulgarian state ('BBB-'/Stable) and evidence of tangible state support. Standard and Poor's rate Bulgaria at investment BBB grade, Moody's – at Baa2 by Moody's and Fitch - BBB-. Bulgaria officially broke up with Fitch in March 2010 in a bid to cut costs and amid a flood of negative assessments and warnings, which Sofia slammed as manipulation of public opinion and blackmail par excellence. It is not right if a small country such as Bulgaria pays BGN 300,000 each year to be rated by yet another rating agency, the finance ministry commented back then. The statement echoed the comments of local analysts, according to whom the gloomy forecasts for Bulgaria that Fitch Ratings had lately begun to churn out were in response to the state decision to suspend its contract with the agency. Insiders say outgoing Finance Minister Simeon Djankov was surprised by BEH decision to contract Fitch rating agency, but was assured its bid was the best. BEH was incorporated in 2008 with a decision of the previous Socialist-led government. BEH EAD is a shareholding company with 100% state owned participation. The Holding includes Mini Maritsa Iztok EAD, Maritsa East 2 TPP EAD, Kozloduy NPP EAD, NEK EAD, Electricity System Operator EAD, Bulgargaz EAD, Bulgartransgaz EAD and Bulgartel EAD. All companies, brought together in the holding structure, preserve their operational independence and licenses, as they are all owned and directly subordinated to the corporate center BEH EAD. The Bulgarian Energy Holding EAD is one of the largest companies in the region, and national energy leader. Bulgaria tapped last summer international markets to raise funds to repay the first tranche of about EUR 835 M (USD 1.07 B) in 11-year Eurobonds, which matured on January 15, 2013. The next tranche however is due in 2015 and Sofia may be forced to go to the markets again.
Source: Capital (11.03.2013)

The power generating system in Bulgaria is experiencing serious financial difficulties, Bulgarian Energy Holding CEO Mihail Andonov said. In his words, the company’s debts have reached one billion levs. Andonov warned that the holding’s collapse, which may pull down the whole energy sector in Bulgaria, could be prevented only with an emergency loan of at least half a billion euro. However, as a state-run company, the Bulgarian energy holding needs a permit from economy ministry to apply for a loan, which is not an option given the political crisis in Bulgaria.
Source: Standart (11.03.2013)

The costs of Heat Supply Sofia for external services exceed BGN 25 million per year, shows the statement provided by the company to the Finance Committee of the Sofia Municipality together with its investment program for this year. Of all costs the company allocated most to heat accountants. The company has given them BGN 6.1 million in 2011. Last year the amount was BGN 6.4 million, and this year it is expected to be BGN 6 million. Costs in 2012 were expected and this year they are only estimates. Among cost accountants, other big expenditure of the company is related to interest on debts to Bulgargaz. In 2011, the supplier has received BGN 4.6 million, and in 2012 – BGN 6.6 million. In this year interest rates are expected to reach BGN 8 million, The report does not include interest on old debts of the company, which have been transferred to the Bulgarian Energy Holding.
Source: Sega (13.03.2013)

Just two international banks want to give a EUR 250 million loan of Bulgarian energy holding, as to the alternative-bond emission with a bridge loan candidates are five. Ther term for handing out of papers expired on the 21st of March. The two candidates that showed interest towards the loan are Citibank and Deutsche Bank. The two banks submitted bids for the bond issue, too (where Citibank is in consortium with Raiffeisen). The rest are J.P. Morgan, HSBC and Societe Generale. There was a proposition from Goldman Sachs, but the offer was incomplete. The interest towards the procedure can be determined as average. Initially from the holding announced that 30 banks made presentations for the loan. Now the question is which of the two options will the state holding company choose. One possibility is to choose the easier one with taking credit where candidates are scarce and the cost of the loan may be higher. The second is the bond that is more complex tool, but it can be more financially beneficial and will ensure greater transparency around the otherwise secretive state company.
Source: Capital (25.03.2013)

Bulgaria and Hungary Enter into Energy Alliance Bulgaria will enter into a new energy alliance with Hungary and three other central European countries. Bulgaria has received an invitation to join in the project during the meeting of President Rosen Plevneliev with his Hungarian colleague Janos Ader in Budapest. “We need to cooperate in the sphere of power engineering and gas supplies,” the Bulgarian President underscored. This will enable us to resolve a number of current issues, he added. “Unlike Bulgaria Hungary has an access not only to the Russian but also to the Norwegian gas, which is much cheaper. If Bulgaria had such a connection it would have saved the national economy about 10 billion USD for gas supplies,” Plevneliev explained. The idea to form an energy alliance dates back to September 2012 and was embraced by Hungary, the Czech Republic, Slovakia and Poland. The counties share a common goal – to diversify and liberalize their energy markets and seek alternatives to energy monopolies. Bulgaria and Hungary are both ready to join the Nabucco and South Stream projects.
Source: Standart (03.04.2013)

The power of NPP Kozloduy fell by 700 MW Electricity System Operator (ESO) has ordered the NPP Kozloduy to reduce the power of the 5th and 6th block to prevent the collapse of the power system. ESO pointed out as reason the lower consumption and export, as well as the large flood, and hence - and production of hydro power plants. ESO did not answer the phone to confirm or deny the information, or to clarify whether besides the cheapest producer of renewable electricity it would also reduce other plants. The order of the ESO was to reduce the power of the 5th block to 750 megawatts, and of 6th - down to about 550 MW, however, confirmed the head of NPP Kozloduy Valentin Nikolov. That makes a total reduction of nuclear power by 700 MW. He explained that the measure would require the planned annual stopping of the 5-th block for repairs to be delayed by 2-3 days. Yesterday the state-owned Maritza East 2 worked with less than 430 megawatts in three of the eight blocks.
Source: Monitor (04.04.2013)

Bulgaria's National Electric Company, has committed a number of breaches, mostly related to the production of excessive quantities of electric power, the prosecution probe has concluded. The probe of the National Electric Company, NEK, the State Commission for Energy and Water Regulation, DKEVR, and the three power distributors – CEZ, EVN, and Energo-Pro was launched in the aftermath of mass protests in the country against high utility bills that turned to civil unrest and led to the resignation of Prime Minister, Boyko Borisov, and the Cabinet of his Citizens for European Development of Bulgaria party, GERB. Prosecutor, Borislav Dzambazov, stated at an emergency press conference Wednesday that NEK had improperly committed to purchase 100% of the produced electric power regardless of the market demand. According to the prosecutor, there is evidence senior NEK employees have acted in premeditation in contracting unfavorable clauses, something that would require a pre-trail proceedings.
Source: Standart (04.04.2013)

BEH decides on the loans up to 13 May Bulgarian Energy Holding (BEH) will decide by May 13 whether to borrow or to place a bond issue totaling EUR 250 million, the company announced late last week. Money is needed to refinance a syndicated loan to BNP Paribas, whose repayment period expires in May. The money was withdrawn from NEK, which is part of BEH, to finance the project for a second nuclear power plant at Belene. Later came the construction of the still non-operational hydropower Tsankov Kamak. BEH announced a competition for the loans a month ago, after receiving a credit rating of BB+ by Fitch. Initially, the company announced that it wants to draw two loans, one by a bond issue of BGN 1 billion. Then stated that it plans to borrow BGN 500 million. The company needs money not only to cover the debts of its subsidiaries, but also to participate in the construction of the pipeline Nabucco.
Source: Trud (08.04.2013)

Bulgaria's energy holding co rejects single bid for 250 mln euro loan The Bulgarian Energy Holding (BEH) said it turned down a bid by Deutsche Bank, the single candidate to extend a 250 million euro loan to the company, after it failed to meet the tender requirements. Deutsche Bank was disqualified because it failed to submit a document certifying it had paid the required guarantee, BEH said in a statement on its website last week. The tender procedure was canceled. BEH plans to borrow the money to refinance a credit taken out by one of its units, the National Electricity Company. Another option to raise the money which the holding company is contemplating is a bond issue. It has received six offers for an advisor to the planned issue. BEH (www.bgenh.bg) incorporates assets of Bulgaria's sole nuclear power plant Kozloduy, gas monopoly Bulgargaz, gas transmission system operator Bulgartransgaz, telecommunications operator Bulgartel, the National Electricity Company and its wholly-owned system operator Electricity System Operator, coal-fired power plant Maritsa East 2 and the Maritsa East coal mines.
Source: mediapool.bg (16.04.2013)

Citigroup will arrange the refinancing of NEC's loan to BNP Paribas. This became clear from the notice of the Bulgarian Energy Holding (BEH). International Bank will first need to provide up to 21 May short-term loan of 195 million euro, and then it has to sell bonds to 250 million euro. No information on when the contract will be signed, but probably only a matter of days. It is almost certain that the state holding company will be able to fit in time to the maturing loan which energy company drew for "Belene" project. Besides Citigroup offers in the competition for bonds, which was announced on March 7, filed several banks - Deutsche Bank, JP Morgan (in consortium with First FBH), HSBC, Societe Generale and Goldman Sachs.
Source: Capital (23.04.2013)

Citigroup will organize the refinancing the loan of the National Electric Company (NEK) to BNP Paribas, according to a media statement of the Bulgarian Energy Holding (BEH). Citigroup will first have to provide a short-term loan of EUR 195 M by May 21 and then trade bonds worth up to EUR 250 M, according to reports of banks.dir.bg. The maturity date of NEK's loan of EUR 195 M from BNP Paribas is May 21. The contract with Citigroup is to be signed within days, meaning that BEH will most probably manage to fit within the maturity date for the loan which the energy company withdrew for the Belene NPP project, according to reports of dnevnik.bg. In early March, BEH launched two simultaneous tenders – one for a bank which had to supply a loan of EUR 250 M and one for an investment consultant on a bond issue worth EUR 250 M. One week ago, it turned out that the first procedure had collapsed after the only candidate to submit a final bid, Deutsche Bank, was found to have tabled an offer which did not meet the requirements of BEH. As regards the second procedure, a total of six companies filed bids for becoming investment consultants on the bond loan, including Goldman Sachs, Citi Group, a consortium of JP Morgan and First Financial Brokerage House (FFBH), Deutsche Bank, Societe Generale and HSBC. BEH, which is undergoing a top-level reshuffle, approved a decision to withdraw a bond loan from Citigroup on April 11. The decision was endorsed by Asen Vasilev, caretaker Minister of Economy, Energy and Tourism on April 19. The bond issue will be considered successful if it raises at least EUR 150 M. Citigroup is also to offer a scenario for bridge financing in the case of a failed bond issue by May 11, 2013. The bonds mature in five years.
Source: Darik Radio (24.04.2013)

Bulgarian energy holding has uncollected debts from its subsidiaries to the amount of over BGN 437 million. This is evident from the company report for the first quarter of the year. Among the largest debtors are as follows: National Electricity Company (NEC) and Bulgargaz. Due to shrunk revenues, profit of the holding is by BGN 1.5 million smaller, as compared to the same period last year. BEH is composed of the following companies: TPP Maritsa iztok 2, Mines Maritsa Iztok, Bulgartel, Bulgartransgaz and Nuclear Power Plant Kozloduy.
Source: Trud (14.05.2013)

Bulgarian Energy Holding (BEH) has withdrawn a bridge loan to the amount of EUR 250 million. With part of the money, the holding is to finance National Electricity Company, which on the other hand has to pay back its loan towards the French Paribas, taken for NPP Belene, several years ago. With the rest, BEH is to insure its participation in investment projects as construction of Nabucco, gas connections with neighboring countries and the development of the grid. Maturity of the loan for Belene was due last May. It was rescheduled after a partial payment. The idea is in six months’time BEH to place bonds with which to repay the bridge financing.
Source: Sega (21.05.2013)

The Corporate Commercial Bank, the Central Cooperative Bank, Investbank, UBB, UniCredit Bulbank, Raiffeisenbank are the financial institutions managing funds of state companies, 24 Chasa daily reveals. Standart daily specifies that the number of these banks is 11 and adds the names of Postbank, First Investment Bank, D Commercial Bank, CIBank and Bulgarian-American Credit Bank. Some 41 of state companies have deposited too much of their money into only one bank, research by Bulgarian ministries revealed. Some 59.44% of money of NEC, 96% of money of Bulgartransgaz, 88.20% of BEH and 90.85% of deposits of Bulgargaz are managed by the Corporate Commercial Bank. Five companies related to the Ministry of Economy have large deposits in the Central Cooperative Bank. 42.54% of the money of Kozloduy NPP is deposited in Investbank. Money of BDZ Passenger Services is managed by UBB and Eurobank, money of BDZ Freight Railway Services is managed by the Corporate Commercial Bank, 61% of the money of Bulgarian Posts is managed by UniCredit Bulbank, while 91.95% of the money of Bulgarian Port Infrastructure Company is managed by the Central Corporate Bank.
Source: Standart (23.05.2013)

Public provider Bulgargaz New is preparing to withdraw new large loan. The company needs USD 150 million to purchase natural gas. The company, which has worked for years at a loss for determined lower prices of natural gas in 2011 by the state regulator, has withdrawn a loan to the amount of BGN 80 million from CCB. Still the money is not enough. The Company has a debt towards its mother company BEH, as well. The new loan will most likely be used by Bulgargaz for filling up the emptied storage in Chiren. Quantities stored there are used in the winter
Source: Trud (23.05.2013)

OMV sells 9.0% stake in Nabucco West to GDF SUEZ Austria's OMV sold some 9.0% in Vienna-based Nabucco Gas Pipeline International (NIC) to French power giant GDF Suez, after it recently took over Germany's RWE share in the project company, OMV said on Tuesday. "Closing of the transaction is subject to certain conditions and expected to occur in H2 2013," OMV said in a statement. The parties to the deal did not disclose the purchase price. In April, RWE sold its 17% stake in NIC to OMV. Adding France as a new partner is a clear sign of the pan-European support for Nabucco West, the statement added. Following closing, NIC is owned by Bulgaria's BEH, Turkey's BOTAS, Hungary's FGSZ, GDF SUEZ, OMV and Romania's Transgaz. NIC was set up in 2004 to develop, construct and operate the Nabucco pipeline, which was originally planned to start at the Georgian-Turkish border but was later downsized. The shorter 1,300 kilometre Nabucco West pipeline will instead start at the Turkish-Bulgarian border and bring Caspian region gas via Bulgaria, Romania and Hungary to the vicinity of the gas hub at Baumgarten, near Vienna. Nabucco West is competing with the rival Trans Adriatic Pipeline to deliver gas from the Shah Deniz II field. The Shah Deniz group, led by BP and Norway's Statoil, has said it will announce their pick by the end of June. Last week the governments of Austria, Hungary, Romania, Bulgaria and Turkey signed a joint declaration confirming their commitment to the Nabucco West project.
Source: Darik Radio (29.05.2013)

BEH can not be closed now because of loans Bulgarian Energy Holding (BEH) does not execute the functions, for which was created 6-7 years ago. But from the perspective that it is the only player in the Bulgarian energy sector, which is subject to credit, it cannot be closed, said socialist MP and former Deputy Energy Minister Yavor Kuyumdjiev regarding the findings in the audit reports of the European Commission and the World Bank on the state of the Bulgarian energy sector. They state that management under the umbrella of the state-owned BEH is not transparent. BEH was established in September 2008 and Kuyumdjiev stated that then the idea of its operation was quite different and "from this perspective, perhaps we should reflect on its development." "To date EUR 250 million bridge financing are allocated to the Bulgarian Energy Holding to cover the loan to BNP-Paribas (drawn by NEK to prepare for the construction of NPP Belene).
Source: mediapool.bg (04.06.2013)

Russia Expects a Decision on NPP Belene Project Rosatom’s claim for one billion euro against Bulgaria’s national electric company (NEC) for the equipment for NPP Belene that the Bulgarian company ordered, but has not paid yet, may be withdrawn, if the Bulgarian government decides to restart the project, while NEC and Rosatom reach an agreement, as to how and in what term the debts of the Bulgarian company to its Russian partner shall be paid. This became clear from a statement of Genadiy Tepkyan, Vice President of Atomenergoproekt, the company that Atomstroyexport merged with. For the time being, Rosatom’s claim against NEC filed at the Court of Arbitration in Paris is still valid. By the end of the current week the Russians will have submitted all claims, then the sum claimed by Rosatom will be finally announced, Tepkian said. However, he didn’t specify what the sum is. It transpires from his statement that it will hardly differ from the sum quoted several months ago – 1 billion euro.
Source: Standart (06.06.2013)

Bulgargaz, a subsidiary of Bulgarian Energy Holding (BEH) offered the State Energy and Water Regulatory Commission to tie the natural gas price for the third quarter of 2013 at BGN 630 per 1,000 cubic meters, the company said. The price is without VAT and excise duty. It represents a decrease by 0.15% (BGN 0.94 per 1,000 cubic meters) compared to the current price. Proposal of Bulgargaz is in accordance with the requirements and conditions of the Ordinance to regulate gas prices, the company added. The state watchdog is to consider the proposal for the price of gas and to come with pre-decision, as after public discussion a final decision will be taken.
Source: Class (11.06.2013)

Mihail Andonov, Chief Executive Officer of the Bulgarian Energy Holding (BEH), has been dismissed. Andonov, former CEO of the National Electric Company (NEK), was appointed CEO of BEH in March 2012. According to a media statement posted on the website of Bulgaria's Ministry of Economy, Energy and Tourism, Dragomir Stoynev, Minister of Economy and Energy, has dismissed the Board of Directors of BEH including Mihail Andonov, Bozhan Stoyanov, and Todor Shopov. The newly elected members of BEH's Board of Directors are Boyan Boev and Georgi Hristozov. The media statement does not specify motives for the staff reshuffle at BEH. According to reports of Sega daily, the departure of senior officials of BEH comes at a time when the National Electric Company (NEK) is to spin off the Electricity System Operator (ESO). The delay by over one year of the spin-off transaction caused the European Commission to launch infringement proceedings against Bulgaria, mediapool.bg notes.
Source: Standart (19.06.2013)

Rosatom Wants to Construct Belene NPP “Rosatom is quite interested to finish the construction of Belene NPP,” the general director of the Russian state-owned corporation Sergey Kirienko stated during Petersburg International Economic Forum, Internet portal Neft Rosiy reported. Mr Kirienko reminded that the legal proceedings against the Bulgarian state-run company National Electric Company (NEC) initiated by Atomstroyexport worth 872 million euro for the construction of Belene NPP was under way. "The legal proceedings are going, the lawyers are working,” Mr Kirienko stated further. Rosatom’s general director Kirienko did not answer whether Bulgaria had demanded an out-of-court agreement. The final pleas in the legal case in the court of arbitration in Paris are scheduled for July 2014 so before that period there should be clarity on the project, experts commented.
Source: Standart (21.06.2013)

NEK will purchase electricity with priority from the cheapest stations in the country - NPP Kozloduy and TPP Maritsa Iztok 2. This is one of the measures which will achieve cost reductions for residential customers, said the Minister of Economy and Energy Dragomir Stoynev. This will happen after the adoption of the amendments to the Energy Act and renewable energy, which already passed its first reading in parliament. Stoynev added that this has not been done. On the contrary, NEK has bought primarily from expensive electricity plants. It is possible that such a measure would cause a strong reaction from the U.S. thermal power plants in the Maritsa Iztok region and RES plants that have agreements for the purchase of energy at a higher price, fearing experts. "To stabilize our electricity system, everyone should take a step back," said Deputy Chairman of the Parliamentary Committee on Energy Yavor Kuyumdjiev.
Source: Standart (25.06.2013)

Major Reshuffles Hit Bulgaria’s N-Plant, Energy Holding Bulgaria’s state energy holding company, which groups the country's top energy assets, including its sole nuclear power plant Kozloduy, has seen a new wave of reshuffles, it emerged on Wednesday. The Board of Directors of the Bulgarian Energy Holding Ltd. released Borislav Borisov from the Board of Directors of the National Electricity Transmission Company. He will be replaced by Sava Savov. Major changes have also been made in the management of the country’s sole nuclear power plant Kozloduy. Valentin Nikolov, Teodor Shopov and Valentin Gruev were released from the Board of Directors, to be replaced by Ivan Genov, Aleksandar Nikolov and Georgi Hristozov. The Executive Director of the mining company Mini Maritsa Iztok Ltd. Teodor Drebov and its member of the Board of Directors Dimo Dimov have also been released. The newly elected members in Mini Maritsa Iztok Ltd. Board of Directors are Stanimir Kazlachev and Shteryo Shterev. There is also a change in the line-up of Maritsa East 2 Board of Directors. Georgi Hristozov was released and replaced by Mihail Mitkov. Kozloduy is the only nuclear power plant in Bulgaria and the largest electricity producer in the country, providing more than one third of the national electricity output annually. The company is entirely state-owned and a subsidiary of the Bulgarian Energy Holding. It has raised safety concerns, and the country agreed to shut four of its reactors as a condition of joining the European Union. Under that treaty, Kozloduy was to be decommissioned by 2009, but the work was not completed on time. Bulgaria therefore asked that the EU funding be extended until 2013, to allow it to be completed safely. BEH was incorporated in 2008 with a decision of the Socialist-led government. BEH EAD is a shareholding company with 100% state owned participation. The Holding includes Mini Maritsa Iztok EAD, Maritsa East 2 TPP EAD, Kozloduy NPP EAD, NEK EAD, Electricity System Operator EAD, Bulgargaz EAD, Bulgartransgaz EAD and Bulgartel EAD. All companies, brought together in the holding structure, preserve their operational independence and licenses, as they are all owned and directly subordinated to the corporate center BEH EAD. The Bulgarian Energy Holding EAD is one of the largest companies in the region, and national energy leader.
Source: Capital (27.06.2013)

The Shah Deniz II consortium has suggested that it has chosen not to use Nabucco West for the transportation of natural gas from Azerbaijan's most promising field to Europe. If this decision is formally confirmed and carried out, it will cast significant doubt over the protracted Nabucco project, designed to build a pipeline to transport Azeri gas to Europe. The Shah Deniz consortium had to decide between Nabucco West and the Trans-Adriatic Pipeline (TAP). The Nabucco project would have shipped Azeri gas from Turkey through Bulgaria, Romania, Hungary on to Austria, which has made Bulgaria a country highly committed to it. On the other hand, TAP would transport natural gas directly westwards through Greece, Albania on to southern Italy. The Shah Deniz consortium has informed Greek PM Antonis Samaras, as well as Nabucco shareholder OMV of its intention to choose TAP. Shah Deniz II is operated by BP, together with Statoil, SOCAR, Total, Lukoil, NIOC and TPAO.
Source: Sega (27.06.2013)

Standard&Poor's Ratings Services (S&P) affirmed its BB- long-term corporate credit rating on Bulgaria-based power utility Natsionalna Elektricheska Kompania EAD (NEK), the agency said on Friday. “At the same time, we removed the rating from CreditWatch, where it was placed with negative implications on Dec. 20, 2012. The outlook on NEK is negative,” the rating agency said in a statement. S&P also said in the statement: “The affirmation reflects our view that NEK's immediate refinancing risk has been eliminated following the refinancing of its ˆ195 million syndicated loan, which matured in May 2013. We understand that NEK's parent company, BEH, provided NEK with proceeds from a ˆ250 million bridge loan as an intragroup loan to repay the syndicated loan. We understand that BEH plans to refinance the bridge loan with a public bond issue at the BEH level. Furthermore, NEK sold its stake in the monopoly system operator ESO EAD to BEH, using the funds for the settlement of intragroup loans other than that NEK has just received from BEH. We understand that NEK will transfer three project-related credit facilities with total outstanding principal of ˆ50.8 million (at May 31, 2013) to ESO as part of the transaction. These actions will result in a material reduction in NEK's external financial bligations, which we forecast at about Bulgarian lev (BGN) 215 million at year-end 2013 (BGN734.0 million at year-end 2012). We understand that NEK's tariffs for the next regulatory period starting July 1, 2013, are still under negotiation. We are uncertain as to whether the new tariffs will reflect the continuing increase in costs for green energy and other electricity system costs in a full and timely manner. Moreover, the tariff review is to be completed in the context of recent changes in the Bulgarian government and regulator. This uncertainty weighs on our assessment of NEK's business risk profile. These factors, in combination with a contraction in domestic and export demand, resulted in NEK reporting a consolidated loss of BGN192.4 million in 2012. Our base-case scenario for 2013 factors in BGN120,000 of compensation for under-recovered costs over 12 months. We also deconsolidate the contribution of ESO from the second half of the year. Based on NEK's tariff application for the next regulatory period, we anticipate that NEK's Standard & Poor's-adjusted funds from operations (FFO) to debt will exceed 15% in 2013. In our forecast, we treat the intragroup loan from BEH as debt because it is funded by a short-term bridge loan on BEH's balance sheet, and has a short maturity and a lack of flexible terms. Nevertheless, we recognize that it is provided by what we consider to be a supportive strategic owner. We apply our criteria for rating parents and their subsidiaries to NEK and add two notches of parental support to NEK's stand-alone credit profile (SACP) of 'b'. The uplift reflects BEH's stronger credit quality than that of NEK due to BEH's stronger business risk position and cash flow generation, as well as its positive discretionary cash flows and significant cash holdings. Our assessment of NEK's 'b' SACP is based on our view of the company's "highly leveraged" financial risk profile under our criteria, which in our opinion mainly reflects its "less-than-adequate" liquidity position and aggressive financial policies. We assess NEK's business risk profile as "weak." This reflects the company's meager profitability and regulatory uncertainty owing to annual tariff resets by Bulgaria's State Energy and Water Regulatory Commission. Our assessment of NEK's business risk profile also factors in the legal unbundling of ESO, NEK's lowest-risk operations, and the uncertainty related to the Belene nuclear power plant project, which we understand is on hold. The negative outlook reflects our uncertainty as to whether NEK's electricity tariffs for the next regulatory period will cover the ongoing increase in electricity system costs. Full and timely pass-through of costs and a fair return on assets will be important for NEK to maintain its current business risk profile and, ultimately, the ratings. We could lower the rating if NEK is not able to achieve adjusted FFO to debt exceeding 12% on a sustainable basis, which we see as commensurate with its SACP of 'b'. In accordance with our criteria for rating parents and their subsidiaries, a downward revision of NEK's SACP by one notch would result in us lowering the long-term corporate credit rating on NEK to the same extent (as long as we assess BEH's credit quality as unchanged). In addition, any evidence of a weakening of the link between BEH and NEK could cause us to revise our approach of factoring in parent support to the SACP. We could revise the outlook to stable if we believe that NEK's financial risk profile has improved to "aggressive" from "highly leveraged" following a decision on tariffs in the next regulatory period and the unbundling of ESO. In particular, this will depend on NEK's ability to reach and maintain adjusted FFO to debt of more than 12% on a sustainable basis, alongside more conservative liquidity management.”
Source: Class (01.07.2013)

NEK and ESO exchange bosses Bulgarian Energy Holding (BEH), which includes NEK and ESO, exchanged some of the executives in both companies, and appoint a new one. The former executive director of NEK Ivo Levterov assumes the same position at ESO, from which is released Ivan Yotov. At the Board of Directors of the network company enters the new Deputy Energy Minister Ivan Ayolov, who was executive director there up to 2010. From NEK in the management of ESO is also transferred Kamen Todorov. Vladimir Inkov was appointed Executive Director of NEK, hitherto on the board of ESO and led procurements of BEH. At the Board of Directors of the National Electricity Company has been appointed another former Deputy Minister of Economy of the triple-coalition cabinet - Lachezar Bogdanov.
Source: Standart (03.07.2013)

Mines Maritsa Iztok Jsc. has a new CEO. This is Stanimir Kazlachev who days ago was appointed to the Board of Directors of the mining company, together with Shteryo Shterev. They took the places of the released Dimo Dimov and Teodor Drebov. Now Kazlachev is selected as CEO of the company, and Shterev – as Chairman of the Board of Directors. Nuclear Regulatory Agency (NRA) has a new chairman as well. Due to the expiration of his term, Sergey Tsochev was released of office. His place was taken by Lachezar Kostov, who is deputy chairman of the NRA since 2006.
Source: Standart (04.07.2013)

European Commission Opens Proceedings against Bulgarian Energy Holding The European Commission announced it has opened formal proceedings against Bulgarian Energy Holding and its subsidiaries Bulgargaz and Bulgartransgaz for an alleged hindering of competition. The European Commission will investigate whether Bulgarian Energy Holding (BEH), its gas supply subsidiary Bulgargaz and its gas infrastructure subsidiary Bulgartransgaz might be hindering competitors from accessing key gas infrastructures in Bulgaria, in breach of EU antitrust rules. An opening of proceedings does not prejudge the outcome of the investigation. The Commission has concerns that the Bulgarian energy incumbent BEH and its subsidiaries may be abusing their dominant market position on the natural gas markets in Bulgaria, in breach of Article 102 of the Treaty on the Functioning of the European Union (TFEU). In particular, the Commission has concerns that these companies may be preventing potential competitors from accessing the Bulgarian gas transmission network and the gas storage facility by explicitly or tacitly refusing or delaying access to third parties. In addition, these companies may be preventing competitors from accessing the main gas import pipeline by reserving capacity that is consistently not used, without releasing it on the market. “Without access to this key infrastructure, it is impossible for any companies to compete with Bulgargaz on the Bulgarian gas supply markets,” the commission said in an official statement. It points out that such practices, if established, restrict competition and may lead to less choice and worse gas supply conditions, ultimately to the harm of EU consumers.
Source: Dnevnik (08.07.2013)

South Stream construction to employ 6,000 ''Overall, the South Stream project will create 6,000 jobs in Bulgaria. The construction itself will employ 2,500, and the rest will add up from the workers of the supply and service units'', South Stream Bulgaria CEO Georgi Gegov informed. According to the documentation of the project, at least 16 specifications will be sought in relation to the construction of the Bulgarian part of the pipeline. When it comes to the operation, the South Stream will continuously employ 200 Bulgarians at the 3 compressor stations located in Bulgaria: KS Varna, KS Lozenets and KS Rasovo. In total, there will be 8 compressor stations in Europe. There was a public consultation on the topic in Varna, the 25th of its kind in a row in the country. The main emphasis was the assessment of the environmental impact / EIA / of the South Stream, which passed in a heated discussion. The debate was opened by Ivan Portnih, the new mayor of the city. The project company, true to the principle of hearing all the parties, insisted on dialogue with the people, who were impatient with their questions. The constructors reassured the public that the noise of the compressor station near Varna, where the 4 gas pipes will pass, will not exceed the norms.
Source: Standart (17.07.2013)

BIA: Export prices of electricity should not be lower than those for domestic consumption Public Advisory Council to the regulator discussed changes in the electricity prices. In its statement one of business organizations - Bulgarian Industrial Association (BIA), says: "Bulgarian Industrial Association takes a position based on the following principles: 1. Axiomatic, export prices should not be lower than those for domestic consumption, because it makes the production of the Bulgarian companies uncompetitive; 2. Changes in pricing should not hamper the opportunities for reproduction of the participants in the electricity market, i.e. decrease of the electricity prices should not be at the expense of the necessary investment costs of the electricity companies; 3. The funds of the sale of CO2 allowances should be directed towards energy-efficient technologies in the industry and not to cover the price difference from production. You have to look long and not making time! 4. We need a radical reform in the sector. For this purpose, the country should buy the rights or property of "Maritsa Iztok" 1 and 3, as well as renewable energy sources with a raise target resource outside estimates of the country, and bring to the market conditions, the pricing of these proceedings."
Source: BIA (23.07.2013)

Everybody against the cheap electricity Almost all companies in the chain production-transmission-distribution of electricity are against reducing their revenues and consequently the price. This became clear during the public discussion of the proposition of SEWRC for price reduction on 1 August with an average of 5%. Only the state-owned Maritsa Iztok 2 TPP had no objection against the intended selling price of energy. All other public and private companies said cuts in their incomes will lead to deleveraging and financial collapse. For 2012, the ESO reported BGN 38 million losses from the transmission of energy, and now they will increase if prices are accepted as such, warned CEO Ivo Lefterov. He added that ESO needs BGN 60 million to cover accumulated losses, which are now expected to rise. NEK complained that it will need BGN 50 million per month only for the payment of green energy, and these are not provided. The plans set by the regulator miss BGN 12 million revenues for repairs. EDCs reacted even more strongly, and their overall opinion is that with the lower prices they would "go to the emergency room." CEZ, EVN and Energo-Pro united around a strong reduction of their technological losses thet the watchdog provides. "The targeted figures are intended to stimulate you to reduce these losses," responded Elenko Bozhkov of regulator. The final decision on the new prices will be made on July 29.
Source: Standart (24.07.2013)

Discussions about South Stream enter their final The public discussion about the environmental impact assessment (EIA) of the South Stream are about to end, with the last two meetings on the topic to be held today. Today the people of Strajitsa and Polski Trymbesh will be able to ask questions and make suggestions about the pipeline project. The public hearings on the EIA of the South Stream were launched on July 1 this year and they were carried out for just 26 days in all 39 municipalities which will be crossed by the pipeline. As the next step, the ministry has to approve the final document and then to submit it for a building permit to the Ministry of Regional Development.
Source: Standart (26.07.2013)

Gas connection with Romania starting from next year Gas connection between Bulgaria and Romania will start early next year and by the end of 2014 - the Bulgarian section of the route with Turkey. That said the boss of "Bulgartransgas" Kiril Temelkov on a hearing at the State Energy and Water Regulatory Commission (regulator). In his words, placing a gas connection with Romania will be delayed by six months because during construction were found many archaeological sites - tomb and artifacts from the Middle Ages. So instead of the initial deadline for entry into commercial operation of the pipe - the end of June this year, it will start in early 2014. Temelkov explained that section of the pipeline on Bulgarian territory is built entirely in ongoing trials on the track. We are currently working on the drilling of the Danube and up to November this process will be completed. The minimum bandwidth in Romania is 0.5 billion cubic meters per year, the maximum - 1.5 billion cubic meters per year, added BTA. He explained that the company has deposited in the regulator mechanism by which to allocate capacity and congestion of the pipe will be announced and procedures under the rules for use of the network. On reverse the gas connection with Greece Temelkov commented that it does not develop from "Bulgartransgas" rather than design company registered BEH and the Greek company "Poseidon." The project is on schedule and is conducted EIA flow and procedures for approval of the route of the pipeline itself. The pipeline is expected to be ready in early 2015. "Even before the date of the relationship of Bulgarian transmission system in Turkey, after it became clear that the project" Nabucco West "will not be implemented in our territory," commented Temelkov. He noted that the financing of this project, our country will be able to rely on EU funding under the EC Regulation on Trans-European infrastructure. Besides the relationship with Turkey, the country is defending three more such projects - the expansion of gas storage in UGS, expansion and rehabilitation of the transmission network in the country and build a permanent reverse gas flow with Greece on the existing network.
Source: Monitor (01.08.2013)

The cabinet hides data on public deposits again Although PM Plamen Oresharski pledged that ministries should observe the rules for selection of financial institutions, which will hold state company funds, most ministries did not publish data on the concentration of their companies’ money, Capital Daily reports. The Ministry of Agriculture was the only ministry that published a report about its activities on its website. After Capital Daily questioned the ministries about their activities, the Ministries of Economy and Transport also published their reports. These two ministries hold most of their funds in the Corporate Commercial Bank, which is controlled by Tsvetan Vasilev. Data published in May confirmed unofficial information that the bulk of state company funds were concentrated in just a few banks. The first one was the Corporate Commercial Bank, where 18 public companies had deposited their money, including the Bulgarian Energy Holding (BEH). Second was the Central Cooperative Bank, which was the favourite bank of 15 public company managers. However, according to the data published now, none of the public companies related to the Ministry of Finance exceeds the 25% barrier. Three months ago, the money of the Bulgarian Stock Exchange was held mainly by Postbank and the Corporate Commercial Bank, while now it is deposited in six banks. However, companies related to the Ministry of Agriculture and the Ministry of Regional Development are still holding their money mainly in D Commerce Bank and the Central Cooperative Bank respectively.
Source: Capital (01.08.2013)

Production of largest BG coal mine decreases by 5m tons y/y in H1 2013 Because of the energy crisis, Mini Maritsa Iztok produced 5 million tons less in the first half of 2013 as compared to the same period last year. The 9.39 million volume in the first six months this year is also 1.3 million tons less than the estimates. Even more worrying is the 69% year-on-year decrease in the debris land mass before the miners get to the coal itself. With 31 million cubic meters, the total landmass digged out in the first half was 5.6 million cubic meters less than prevised. Maritsa Iztok's repair program was also seriously stripped: as compared to the planned BGN 37 million, actually only BGN 24.6 million were spent on repair and maintenance of the heavy mining equipment, processing machinery, and vehicles. Most alarming was the lack of realization of the investment program. As opposed to the originally estimated BGN 100 million for 6 months, only BGN 36 million were invested indeed. Mini Maritsa Iztok EAD is the largest coal mining company in the Republic of Bulgaria. It works the Maritsa Iztok lignite field and has been of decisive importance for the national energy balance since over 50 years.
Source: Standart (12.08.2013)

NEC pays back to TPPS After a meeting between BEH’s CEO Boyan Boev and representatives of miners’ tradeunions NEC starts to pay off its duties to some of the TPPs. The electric company will pay BGN 1.5 million debts back to Heat Supply Pernik for produced via CHP electricity that will enable Opencast Coal Mining also to receive its retarded payment. Besides, NEC is to pay back BGN 1.755 million to Thermal Power Plant Bobov Dol. This is to let suppliers of the electric power plant from the mines Beli Breg, Stanianci, Chukurovo and Vagledobiv Bobov dol to get their delayed payment, too. Representatives of trade unions declared their willingness at least 40% of Bulgarian electric energy to be generated by coals. At present, though the quantity is scarcely about 20-30%.
Source: Standart (13.08.2013)

Bulgartransgas plans to increase domestic gas consumption to 30% by 2020 With only 2.6% of all users, household natural gas consumption in Bulgaria is lagging behind the EU average of 30%. Therefore, Bulgartransgas is planning to develop its transmission network via active investments in order to reach the 30% European average of domestic natural gas use by 2020, the company announced in its 10 years plan which it presented to the State Energy and Water Regulatory Commission. This is the first document by the company that provides clarity and transparency about the long-term transmission network development plans of the company. The plan foresees grand investments in the first 5 years. By the end of this year, the pipeline Silistra Region pipeline and the inter-collector link Ruse-Giurgiu will be both completed. Internal pipelines to Pirdop, to Svishtov and between Simitli Bansko are also in their feasibility study phase. Their construction is to be paid from the next year's budget and and funding is sought from the Kozloduy International Fund.
Source: Standart (14.08.2013)

Bulgarian Court Orders Belene NPP Reports of HSBC Declassified Bulgaria's Administrative Court Sofia City (ACSC) has ordered the government, the Ministry of Economy and Energy (MIET) and the Bulgarian Energy Holding (BEH) to declassify all analyses and evaluations of HSBC bank, the Bulgarian government consultant on the Belene Nuclear Power Plant project. The lawsuit was initiated on the basis of a complaint by the National Movement for Stability and Progress (NDSV) party, Sega daily informs. With a decision #5174 from July 24, 2013, the ACSC revoked the refusal of BEH to grant access to public information concerning all documents, assessments, and reports of HSBC bank on the economic terms of the construction of the Belene NPP. BEH's refusal was explained with the fact that it was not a "body governed by public law"as defined by the Access to Information Act and that the requested information was confidential by virtue of the contract with the consultant. The decision of the ACSC says that BEH EAD is bound to provide the requested piece of information which cannot be interpreted as manufacturing or commercial secret because there is "overwhelming public interest" in the disclosure of the information. The decision of the court can be appealed. If the decision is not appealed or is upheld by the court of cassation, it will be a fundamental change to the existing court practice, which does not treat BEH as a "body governed by public law" bound to provide information under the Access to Information Act. According to NDSV, the step will remove the legal barrier used to protect the secrets in Bulgaria's energy sector. Back in end-October 2012, NDSV asked the Prime Minister for permission to access public information concerning the documents, reports, and assessments of HSBC bank on the economic terms of the construction of the Belene N-plant. The request for access to information was forwarded by the Council of Ministers to the Ministry of Economy and Energy (MIET), but the Ministry informed that it did not have the requested data, adding that the information could be found at BEH, as a result of which, the request was forwarded to BEH. After launching a lawsuit against MIET, the NDSV party submitted a complaint with the ACSC over the refusal of BEH to provide access to public information about the HSBC record on the Belene NPP. Bulgaria's formerly-ruling center-right Citizens for European Development of Bulgaria party, GERB, government scrapped the Belene project in March 2012, declaring it economically unfeasible.
Source: Sega (20.08.2013)

Bulgaria to ask the EC to extend deadline for meeting air pollution requirements to 2020 The Bulgarian government will demand that the European Commission should extend the deadline for meeting EU’s strict air pollution requirements to 2020. Pursuant to the Large Combustion Plants Directive of the European Commission from 2010, “large combustion plants” such as thermal power plants (TPP) should drastically reduce emissions of toxic pollutants by 2016. Thermal power plants are among the biggest polluters in Bulgaria. However, the construction of purification installations in Bulgaria is slow and difficult, while Bulgaria is among EU’s top air polluted countries. Therefore, the European Commission has started punitive proceedings against the country. Data by the Bulgarian Ministry of Environment show that twelve TPPs in Bulgaria do not comply with EU requirements. Bulgarian TPPs should invest about ˆ850 million in environment protection. Yet, Bulgarian Environment Minister Iskra Mihaylova said that there was a trend of reduction of emissions in 2012 and 2013 because a lot of TPPs installed sulphur purification installations.
Source: Sega (22.08.2013)

South Stream gets environmental green light The South Stream gas pipeline project meets the environmental standards in Bulgaria and the EU, the Supreme Expert Environmental Council of Bulgaria (SEEC) of the Ministry of Environment and Water decided. Accordingly, the construction of the pipeline was approved. The decision of the SEEC was taken unanimously, the ministry announced and reminded that the competent authority for the decision is Minister of Environment Iskra Mihailova. Representatives of the Ministry of Regional Development and the Ministry of Agriculture , municipalities , NGOs, Regional Inspectorates of Environment and Water (RIEWs) and representatives from the Black Sea and Danube regions also joined in for the 4-hour discussion. The Environmental Impact Assessment (EIA) procedure on the South Stream was opened in August 2011 with public hearings held in 39 municipalities through which the pipeline will pass. 52 special measures were adopted to limit the impact of the pipeline on the environment, 9 of which protect the life and health of people with the rest guarding the flora and fauna of Bulgaria. The 540 -mile pipeline passes through 11 districts - Varna, Shumen, Targovishte , Razgrad, Rousse, Veliko Tarnovo, Pleven , Lovech, Vratsa, Montana and Vidin. Along its route in Bulgarian territory are a reception terminal at the beach and three compressor stations - " Varna ", " Lozen" and "Rasovo".
Source: Standart (30.08.2013)

South Stream - Bulgaria with new management Project company South Stream - Bulgaria has new management. The changes apply only to the Bulgarian part of the Board of Directors of the company that will build the Bulgarian section of the eponymous pipeline. Released from their positions are CEO Georgi Gegov and members of the Board of Directors Boris Todorov and Mihail Andonov, who until recently was head of BEH. Their place in the management of South Stream - Bulgaria were taken by the current head of BEH Boyan Boev, Yordan Zhelev, who is a manager at Bulgargaz and as Executive Director of the project company was appointed Ilia Ivanov. Castling somewhat surprised people in the gas industry, who commented that the old management had been doing well with their duties.
Source: Standart (04.09.2013)

The state Elektroenergien Sistemen Operator, which manages basic electric network in the country will have new managers, BEH (Bulgarian Energy Holding) has decided. This will happen just two months after the present CEOs of the company were appointed. CEO of the company will be the ex-advisor of State Energy and Water Regulatory Commission Valentin Kolev, who is manager of Elcontrol OOD. He replaces Ivo Lefterov. After two months in the company Kamen Todorov will vacant his position in favour of Severin Vartigov.
Source: Trud (10.09.2013)

Bulgarian energy boss back in court for BGN 16m tax evasion Following a decision of Bulgaria's Supreme Court of Cassation, the case against Bulgarian energy boss Hristo Kovachki over charges of BGN 16 million tax is back in court just a year and a half after the businessman was acquitted. The three-judge panel of the Supreme Court, headed by Judge Ivan Nedev, returned the case to the Court of Appeal for reconsideration sue to alleged procedural breaches. Kovachki, whose party failed to win seats in 2009 parliamentary election, has diverse business interests, ranging from manufacturing to banking and from energy to retail, novinite.com noted. Owning the Thermal Plants "Maritsa-Iztok 3" in Dimitrovgrad and "Bobov Dol", several mines, as well as the heating utilities in Vratsa, Burgas, Veliko Tarnovo and Pleven, the grocery chain "Evropa" and the "Atomenergoremont" company, Kovachki is believed to be one of the richest men in the Balkans, novinite.com informed. The media outlet also noted that if found guilty, part of Kovachki's propertycould be confiscated.
Source: Standart (12.09.2013)

Bulgaria Seals Deal to Purchase Azeri Gas Bulgargaz, Bulgaria's sole public supplier of natural gas has signed a deal with Azeri's consortium Shah Deniz for the purchase of natural gas for a period of 25 years. The import from the Shah Deniz field, the largest natural gas field in Azerbaijan, will not commence before 2019. Under the deal, Bulgargaz is expected to import 1 billion cubic meters annually, reports the Bulgarian National Radio. The clauses in the contract will become effective upon the adoption of the investment decision for the second phase of Shah Deniz II. This project will include an additional offshore gas platform, subsea wells and expansion to the gas plant at Sangachal Terminal, at an estimated cost of at least USD 10 B. As early as the beginning of 2013, Bulgargaz's CEO, Dimitar Gogov, announced negotiations for the purchase of Azeri gas have been set in motion. Deliveries to Bulgaria have been hurdled, however, because Shah Deniz II rejected the use of the Nabucco West pipeline. The Azeri gas is expected to come through the Transatlantic line, which passes through Greece and reaches Italy. Bulgaria will use the interconnectors with Greece and Turkey, which are yet to be built. The plans for them are to be finished next year. This contract is the first real diversification of natural gas sources and the routes for its delivery to the Bulgarian market. It is expected that it will expand the scope of services provided by Bulgargaz and increase security of supplies for Bulgarian consumers.
Source: Darik Radio (20.09.2013)

Bulgaria-Turkey Gas Grid Interconnection Delayed until 2019 The implementation of the Bulgaria-Turkey gas grid interconnection project has been delayed and it will be completed no earlier than 2019, according to Ivan Ayolov, Deputy Minister of Economy and Energy. Speaking Thursday during a conference titled "Natural gas – infrastructure and services" organized by the Bulgarian Federation of Industrial Energy Consumers, Ayolov suggested that the government had inherited gas projects which had not been developed to the stage they were supposed to have reached. He informed that the construction of the gas link with Romania was to be wrapped up in end-October, after which the facility would undergo tests. According to reports of energy news portal 3e-news.net, Kiril Temelkov, CEO of state-owned gas transmission operator Bulgartransgaz, vowed that the Bulgaria-Romania gas grid interconnection would start functioning by end-2013. Ayolov also informed that small progress had been registered with the Bulgaria-Greece gas link but the implementation of the Bulgaria-Serbia gas grid interconnection project had been fast-tracked, especially after the visit of Serbian Energy Minister Zorana Mihaylovic. Bulgaria's Deputy Economy and Energy Minister specified that the land expropriation procedures for the Bulgaria-Serbia gas link and the selection of a designer were to start by end-October, thereby allowing the launch of construction works in May 2014 and the completion of the project by 2017.
Source: Standart (04.10.2013)

Bulgarian Energy Holding Seeks 30% Tax on Revenues of Photovoltaic Power Plants The Bulgarian Energy Holding (BEH) has asked the government and Parliament to agree to levy a 30% tax on revenues of photovoltaic power plants from electricity sold at preferential tariffs. According to a letter of Boyan Boev, executive director of the Bulgarian Energy Holding (BEH), as cited by mediapool.bg, the measure will achieve three goals, including to balance the system, which is currently plagued by a deficit which cannot be covered with the existing electricity prices, to capitalize the National Electric Company (NEK), which is currently in a state of technical bankruptcy with debts of over BGN 2 B, and to once again reduce electricity prices for household consumers, which were downsized by 4.5% in August. Boev's letter was sent last week to Parliament Chair Mihail Mikov, to Ramadan Atalay, Chair of the parliamentary energy committee, to Economy and Energy Minister Dragomir Stoynev. This emerged from a letter sent last week by Boyan Boev, executive director of the Bulgarian Energy Holding (BEH) to Parliament Chair Mihail Mikov, to Ramadan Atalay, Chair of the parliamentary energy committee, to Economy and Energy Minister Dragomir Stoynev. In his letter, Boev proposes the adoption of changes to the Energy from Renewable Sources Act and he explains what burden renewable sources place on the energy system and electricity bills, not only in Bulgaria, but all over Europe. However, he proposes legal amendments which introduce a tax applicable to photovoltaic power plants only. In the letter, the chief executive of BEH points out that the energy system, which has been hit by the renewable energy boom, can be optimized through measures "such as changing the support mechanism and introducing tradable green certificates with a view to alleviating the burden on the budget and avoiding the regulatory risk, or the introduction of price restrictions – ceilings on purchase prices of renewable power." The letter also proposes the introduction of an additional tax on the preferential prices for purchasing renewable electricity. "The tax rate is to be set at 30% and is to be levied on a monthly basis directly by the public supplier on the quantities of electricity sold by the producers," he suggests.
Source: mediapool.bg (04.10.2013)

Photovoltaic Association Seeks International Audit of Bulgarian Energy Holding The Bulgarian Photovoltaic Association (BPVA) has called for an independent audit by an international authority of the Bulgarian Energy Holding (BEH) and its subsidiaries, the National Electric Company (NEK) and the Electricity System Operator (ESO). The step was requested over a recent letter of BEH proposing the introduction of a 30% tax on photovoltaic power plants and restrictions on the output of all producers of renewable electricity, according to Meglena Rusenova, BPVA Chair, as cited by the Bulgarian Telegraph Agency (BTA). Rusenova commented that the proposal of BEH to use the funds raised through the tax for capitalizing NEK as "absurd and scandalous," adding that pouring money into unreformed state-owned energy firms would deepen the crisis in the sector and there would be no transparency about how NEK or BEH would use the proceeds. "We insist on an audit by an international body, which should recommend measures for restructuring BEH, which was also mentioned in the World Bank report published in Bulgaria on May 27, 2013,"the BPVA Chair declared. She said that giving up on reforms in state-owned energy firms actually denoted a refusal to upgrade the energy sector and an unwillingness to keep track of global development trends in the sphere. She said that an example of this was the obstructions placed byBEH subsidiaries like NEK and ESO before the launch of the balancing market. She informed that the BPVA members would announce their next steps after the government came up with an official stance of the proposal of BEH.
Source: Dnevnik (07.10.2013)

Export of electricity jumped 16 times Export of electricity from Bulgaria to neighboring countries increased about 16 times in late September from early June, when the crisis in the Bulgarian power generation was in full swing, according to data from ESO for interconnecting physical flows of electricity between Bulgaria and Serbia, the Republic of Macedonia, Greece, Turkey and Romania. The reasons for the significant growth in the export of electricity are complex, experts commented. On one hand, there is increased energy consumption in Bulgaria's neighboring countries. But a significant impact comes from the reduced export tax on Bulgarian electricity. As a result of the higher export, electricity producers use their capacities more fully, revenues in individual energy companies increase, as well as in the state budget, and jobs are kept.
Source: Standart (07.10.2013)

Electricity System Operator will take over the grid Bulgaria's Electricity System Operator (ESO) is set to take over the grid, currently run by the National Electric Company (NEK), as well as its asset-backed debt to banks. A new model for the redistribution of the companies is being discussed with NEK's creditors, revealed Deputy Minister of Economy and Energy, Ivan Ayolov. The splitting of NEK and ESO is a requirement under the Third Energy Liberalization Package of the European Commission. Bulgaria decided that ESO, which is a subsidiary of NEK should be transferred to the Bulgarian Energy Holding (BEH), which owns NEK. It has become clear, however, that some of the creditors of NEK disapprove the transfer of assets to ESO due to the lack of an acceptable financial model and risks associated with the repayment of loans. Ayolov clarified that the new model is ready and has been consulted with the European Bank for Reconstruction and Development, the European Investment Bank, and Credit Swiss Bank, which is among the nine creditors of NEK, novinite.com said. Due to the delay of adopting the Third Energy Liberalization Package, Bulgaria is threatened with EUR 8448 daily fines if the EC Court in Luxembourg decides against the country.
Source: econ.bg (09.10.2013)

Lukerg Renew to get 10.6 mln euro loan from Raiffeisen for 14 MW Bulgarian wind farm Austria's Lukerg Renew, a joint venture of Italy’s ERG Renew and Russia’s Lukoil Ecoenergo, has arranged EUR 10.6 million financing from Raiffeisen Bank International (RBI) for the acquisition of the 14 MW Hrabrovo wind farm in Bulgaria, ERG said in a press release. Raiffeisen will act as a mandated lead arranger for the loan, ERG added. Lukerg Renew bought in June the Hrabrovo wind farm from Danish turbines manufacturer Vestas. It has been fully operational since March 2012. The project was estimated at EUR 17.6 million, co-owner Vestas added in the press release on the sale of the facility. The financing is for five years and was agreed on in 2012 when Lukerg Renew and Raiffeisen bank signed a loan arrangement for a 40 megawatt (MW) wind farm in Bulgaria. The wind farm, which Lukerg bought from one of RBI’s subsidiaries for EUR 52 million, brought the company a 10% share of the Bulgarian wind power market. (SeeNews)
Source: Other (09.10.2013)

EC may fund 11 Bulgarian energy infrastructure projects by 2020 The European Commission (EC) adopted a list of 250 energy infrastructure projects, which may receive funding of up to EUR 5.85 billion from the Connecting Europe Facility between 2014 and 2020. The projects will benefit from accelerated licensing procedures but should meet four requirements: at least two EU member states should benefit from them; they should develop energy markets and competition; they should improve the diversification of energy supply; and they should reduce carbon emissions. The list includes 11 Bulgarian energy projects, such as new electricity interconnections, gas interconnections, and expanding Chaira Hydro Power Plant, Capital Daily and Duma daily explain. EU Energy Commissioner Gunther Oettinger said: "We have to make sure that our limited funds are used wisely and that EU money goes where it can create most benefits to European consumers. With this list of energy infrastructure projects and their accompanying benefits we also hope to attract more investors."
Source: National television (15.10.2013)

Another state-owned company will be responsible for the electricity grid New state-owned company will measure the load on the power system and will calculate the surpluses and deficits of the electricity at different manufacturers. So far, its role is not clear. Perhaps the company will deal with the maintenance schedules for production plants from renewable sources (RES) and will support the activities of any balancing group of NEK. Green plants can become among the first customers of the new company as they should start to balance their production soon. Information is particularly important because the production of renewable energy is intermittent and often forces network operators and other manufacturers to adapt to green power. Energy Operator for Measurement and Information Technologies Spjsc , registered in the Commercial Register on 19 September, is solely owned by the Bulgarian Energy Holding (BEH) under whose umbrella are the big state-owned companies in the energy sector.
Source: Capital (16.10.2013)

Fed Delay Spurs Bond Sales From Bulgarian Energy to Gazprombank Bulgarian Energy Holding will meet investors next week for a possible debut sale of bonds in euros as emerging-market issuers from OAO Gazprombank to Brazil seize on bets the Federal Reserve will delay tapering stimulus. State-run Bulgarian Energy hired Citigroup Inc. and Raiffeisen Bank International AG for meetings in Europe from Oct. 28, a person familiar with the plan said today, asking not to be identified because the details are private. The company which controls assets in power, natural gas and coal mining, plans to sell securities after Poland and Romania raised benchmark-sized debt and as Brazil markets 2025 dollar bonds. Emerging-market issuers are stepping up debt sales amid bets the Fed will delay trimming its $85 billion of monthly asset purchases. Tapering will start in March after the U.S. government shutdown this month slowed fourth-quarter growth, according to a Bloomberg survey. Gazprombank, part owned by state-run OAO Gazprom, is selling 1 billion euros ($1.4 billion) of five-year bonds, a person familiar with the sale said today. “Sovereign names will take this window of opportunity to issue now,” Regis Chatellier, senior emerging-market sovereign strategist at Societe Generale SA in London, said by e-mail. “I wouldn’t be surprised if Hungary and Ukraine come to the market.” Ukraine is monitoring international markets for a potential debt sale, First Deputy Prime Minister Serhiy Arbuzov said Oct. 17 in an interview in Brussels. Hungary is evaluating if conditions may improve further for a foreign-currency debt sale this year, Laszlo Andras Borbely, deputy chief executive officer of the debt agency, told reporters in Budapest Oct. 21. The average yield on emerging-market sovereign bonds tumbled 77 basis points, or 0.77 percentage point, to 4.8 percent at 4 p.m. in London since a 2013 high on Sept. 5, the Bloomberg USD Emerging Market Sovereign Bond Index (BEMS) shows. Qatar National Bank SAQ is selling $1.5 billion of three-and five-year debt today, while Russia’s Vneshprombank hired banks to arrange investor meetings from Oct. 29 for potential debut dollar bonds, people familiar with the plans said. Latvia, Pakistan and Honduras also announced plans to sell bonds. Increasing demand from investors enabled issuers to narrow spreads. Gazprombank priced five-year bonds at 280 basis points over the benchmark midswap rate compared with initial guidance in the low-300 basis-point area, the person said. Industrial Bank of Korea’s 500 million-euro sale priced at a spread of 85 basis points over mid swaps, narrower than initial guidance of around 95 basis points, according to a person familiar with the transaction, who asked not to be identified.
Source: investor.bg (25.10.2013)

Bulgaria’s Bulgartransgaz extends tender deadline for 4.6 mln euro gas storage project Bulgaria’s gas transmission system operator Bulgartransgaz has extended the deadline of a 9.0 million levs tender for the construction of an exploitation well for the country's Chiren underground gas storage, the company said The deadline has been prolonged to November 28 from October 24, the company said in a filing on its website on Friday. It did not specify the reasons for the change. The project includes the construction of the pipeline to the well and a separation unit. The Chiren underground gas storage, located in northwestern Bulgaria, has 22 exploitation wells and a capacity to hold 550 million cubic metres of gas. Bulgartransgaz is a subsidiary of Bulgarian Energy Holding EAD (BEH).
Source: Construction City (29.10.2013)

South Stream to be constructed by BG companies Bulgarian Minister of Economy and Energy Dragomir Stoynev informed that most of the work on the Bulgarian section of the South Stream will be done by local companies. This will help them to get out of the current difficult economic situation, he noted. Today marked the official start of the construction of the Bulgarian section of South Stream pipeline with a symbolic first connection of tubes at the compressor station of Rasovo. The event was broadcasted via video call to the Council of Ministers, where Gazprom leader Alexey Miller was hosted by the Bulgarian Prime Minister Plamen Oresharski and Minister of Economy and Energy Dragomir Stoynev. Furthermore, it was also agreed that the project will be carried out at a ratio of 70% of borrowed capital and 30% own capital. This means that the Bulgarian Energy Holding will have to take a loan of EUR 620 million, the energy minister informed. The compensation for it will come from the dividends from the pipe's transit fees for the transport Russian natural gas . Importantly, the earlier agreed interest rate of 8% for Bulgaria was lowered to 4.25%. Also, Bulgaria will receive a dividend already from 2018 – and not in the initially agreed 15 years after the first flow of the gas in the tube. The minister estimated that for the period 2013 - 2043, Bulgaria will earn a staggering EUR 2.8 billion from the project.
Source: Standart (01.11.2013)

On 31 October 2013 the Bulgarian Energy Holding successfully completed prior recording of a bond issue in the amount of EUR 500 million. The issue has a maturity date in November 2018 and 4.287% interest. The original intention was to seek EUR 250 million, but after the queries were for about EUR 1.2 billion, or five times the amount, the issue was increased. Conditions agreed by BEH are better as compared to the bond issue placed by the Ministry of Finance in 2012 with a yield to maturity at the rate of 4.436% for EUR 950 million of the same maturity - 5 years, says in the message of the holding. Money is to cover the liabilities of NEK under the project of NPP Belene, as well as other investment projects, including gas connections.
Source: Dnevnik (01.11.2013)

Bulgaria's BEH Raises EUR 500 M from Bond Issue Bulgaria's state energy holding company BEH has raised EUR 500 M, the company announced as the early signing for its bond issue on international market was wrapped up. The company initially planned a EUR 250 M bond issue, needed to refinance debt which matures in May. The bond issue, which will cover the bridge financing, is for five years with an interest rate of 4.287%. BEH was incorporated in 2008 with a decision of the then ruling Socialist-led government. BEH EAD is a shareholding company with 100% state owned participation. The Holding includes Mini Maritsa Iztok EAD, Maritsa East 2 TPP EAD, Kozloduy NPP EAD, NEK EAD, Electricity System Operator EAD, Bulgargaz EAD, Bulgartransgaz EAD and Bulgartel EAD. All companies, brought together in the holding structure, preserve their operational independence and licenses, as they are all owned and directly subordinated to the corporate center BEH EAD. The Bulgarian Energy Holding EAD is one of the largest companies in the region, and national energy leader. Bulgaria tapped last summer international markets to raise funds to repay the first tranche of about EUR 835 M (USD 1.07 B) in 11-year Eurobonds, which matured on January 15, 2013.
Source: Capital (04.11.2013)

Bulgarian Energy Holding (BEH) opens a procedure for direct agreement on the construction of new nuclear capacity at the Kozloduy NPP. The press release is published on the official website of BEH on November 1, 2013. The original announcement reads, as follows: “Based on Article 46, par.1, item 5 of its Internal Policies for procurement, tender and direct negotiations for supply, works and services, Bulgarian Energy Holding EAD (BEH EAD) is opening a procedure for direct negotiation for rewarding a contract with an advisor for ‘Elaboration of a Roadmap for construction of a new nuclear power capacity in Kozloduy NPP– options for developing the potential investment as an international project ’.”
Source: Class (04.11.2013)

Two important documents, based on which was launched the South Stream pipeline construction, were signed. Without these documents, we will not give the start of the "South Stream". The first is the financial model, by which the Bulgarian Energy Holding (BEH) will receive a loan from Gazprom to build the project on Bulgarian territory, something that so far has been downplayed. The best possible financial conditions for Bulgaria were reached, said Minister of Economy and Energy Dragomir Stoynev. According to him, Bulgarian interest is fully protected and not a single BGN lev is to be paid by the taxpayers for the construction of the South Stream. The second important point is that Gazprom categorically refused to hold talks about the project company South Stream giving access to the pipeline to third parties. Eventually it was agreed and is very important because in this way European legislation is protected.
Source: Duma (04.11.2013)

Bulgaria Seeks Contractor for Roadmap for New Unit at Kozloduy NPP The Bulgarian Energy Holding (BEH) has opened a procedure for the preparation of a roadmap for building new nuclear capacity at the Kozloduy nuclear power plant. The procedure will be awarded by direct agreement, according to a media statement of BEH, as cited by investor.bg. An opportunity will be sought to implement the investment plan as an international project. In early October, Bulgaria's Ministry of Environment and Water issued a positive statement on the environmental impact assessment (EIA) report on the project for a new unit at the Kozloduy NPP. In the summer of 2013, the Nuclear Regulatory Agency issued a permit for a site to be sought for new capacity at the Kozloduy NPP. At the end of last week, it emerged that BEH was issuing bonds worth over EUR 1 B. The company managed to raise EUR 500 M through 4-year bonds and it expects to receive another EUR 620 M at an interest rate of 4.25% from Gazprom. The loan from the Russian energy giant is related to the implementation of the South Stream gas pipeline project. The issue of a new unit at the Kozloduy NPP came up after the project for the construction of the Belene NPP was frozen by the center-right GERB government. The government headed by former Prime Minister Boyko Borisov stopped the implementation of the project over its high cost and decided to mount the reactor produced for the purpose at the Kozloduy NPP site. Meanwhile, Bulgaria is also striving to get an extension of the life of units 5, 6 of the Kozloduy NPP. A consortium of Russian Rosatomenergo and French Electricite de France are inspecting and evaluating the equipment and facilities at the two units and their report is to be published by mid-2014. The license of unit 5 of the Kozloduy NPP expires in November 2017 and that of unit 6 in October 2019. An inspection of a delegation of the European Parliament a week ago showed that steps were underway for the decommissioning of units 1-4 of the Kozloduy N-plant.
Source: Capital (05.11.2013)

Since the beginning of next year PIMK Plovdiv (one of the biggest Bulgarian road hauliers) should launch its project for ro-la transportation, said Penko Nestorov, one of the two owners of the company. According to Nestorov, PIMK participated and won a competition of the European Commission (EC) to support ro-la projects under the Marco Polo programme to reduce air pollution and ease traffic by directing loads to the railway tracks. However, the entire project should be run by a private company. The funds from the European Commission will be received subsequently and are not really much essential: PIMK will receive EUR 2 of support from Brussels per 500 tonne-kilometers transported under the new scheme, after the audit .
Source: Capital (05.11.2013)

Bulgaria to export Han Asparuh gas through the South Stream If the recent gas probes in the Han Asparuh block will be successful, Bulgaria will export the excess production via the South Stream pipeline. Via the mega-project, which was recently launched in Bulgaria and passes through Serbia and Hungary to Slovenia and Italy, Bulgarian gas could reach many new markets, experts say. The Bulgarian gas from Han Asparuh would also have also an alternative route to Europe: that would be through Romania via the Ruse - Giurgiu interconnector, which is expected to become operational at the beginning of next year. Currently, the gas flows only from Bulgaria to Romania. For the opposite, Bulgaria's northern neighbor should build a compressor station that pushes natural gas to our country. However, if the Bulgarian gas is poured into the system, it could still reach not only the Romanian consumers, but via a local transmission system Hungary as well. Following that, Bulgarian gas could be passed on to Austria and in particular to the European Gas Hub in Baumgarten, from which then it could be transferred to many other countries. Importantly, the Nabucco pipeline's scheduled route also passes near Baumgarten.
Source: Standart (05.11.2013)

Bulgaria gets 5 years grace period for South Stream payments Bulgaria will not pay any lev for the South Stream pipeline in the first 5 years, it became clear from the words Coalition for Bulgaria MP Tasko Ermenkov. The Russian side agreed for a five years grace period for the loan that the project company will take to fund the Bulgarian share of the construction. So the first 5 years of the pipeline will be free of interest and installments for Bulgaria. Given that the loan will have to be paid for 22-years, in real terms Bulgaria will pay contributions only in 17 of them, Ermenkov informed. Moreover, Bulgaria is set to receive dividends from the very first moment after which the pipeline starts to receive transit fees and receive transit fees. This money will be used to repay the loan. According Ermenkov, 80% of the transit fees received by Bulgaria will go to repay the loan and 20% will remain as profit. "Not a single lev of the Bulgarian taxpayer will be spent on the South Stream , th eMP informed. He added that the total amount that the project company must take as a credit for the Bulgarian financing share is EUR 620.7 million. The interest of the loan will be 4.25% , as opposed to the 8% agreed by the previous government. "We achieved significantly better results than the previously agreed conditions for South Stream, Bulgarian Prime Minister Plamen Oresharski emphasized . He added that Gazprom has also agreed to renegotiate two main points in accordance with the Bulgarian and thus also respectively the European legislation.
Source: Standart (07.11.2013)

Bulgaria’s ESO, NEK seek energy regulator's nod for split-up Bulgaria's Electricity System Operator (ESO) and national electricity company NEK are seeking the approval of the country's energy regulator for their ongoing split-up, the watchdog's director was quoted as saying on Thursday by local media. The State Energy and Water Regulatory Commission (SEWRC) received a couple of days ago the split-up documents of the two companies, Anzhela Toneva said at a meeting of the parliament's energy committee, according to daily Standart. Initially, Bulgaria planned to complete the unbundling by the end of June this year, but the process was delayed and is expected to be completed by Christmas, Standart said, quoting a statement of a senior government official made earlier this year. The unbundling of the two companies is required under the EU’s Third Energy Liberalisation Package. After the separation, all contracts will be reviewed and adjusted to EU regulations, if needed. Following the split-up, ESO will perform all activities associated with construction, maintenance and connection to the country’s power grid, as well as the functions of measuring and reporting electricity consumption, which are currently provided by NEK. Bulgarian Energy Holding (BEH) took full control of ESO from NEK this summer. The holding company was set up in 2008 and controls Mini Maritza-Iztok, NEK, ESO, Bulgargaz and the country’s sole nuclear power plant Kozloduy.
Source: money.bg (08.11.2013)

BEH dismisses the CEO of Bulgargaz Dimitar Gogov Bulgarian Energy Holding decided to dismiss the CEO of Bulgargaz Dimitar Gogov, bTV. The official decision has not been confirmed yet by the Ministry of Economy and Energy and the Bulgarian Energy Holding. A declaration has already been filed at the Registry Agency by the directors of BEH for the former regional director of the National Revenue Agency – Vidin Shishman Chaushev to be assigned on the released post.
Source: Agency Focus (11.11.2013)

Dimitar Gogov, former CEO of state-owned gas supplier Bulgargaz has been replaced with Shishman Chaushev, former director of regional National Revenue Agency branch. Dimitar Gogov, former CEO of state-owned gas supplier Bulgargaz who was surprisingly discharged from his post on Friday, confirmed himself for BNR that he is no longer chief executive of Bulgargaz and that his successor on the post will be Shishman Chaushev, former director of National Revenue Agency regional office in Vidin. Gogov also said that he was not informed about the decision for his replacement, reports BNR. The decision made by The Bulgarian Energy Holding (BEH), an enterprise which brings together all state-owned energy companies is yet to be confirmed officially.
Source: Trud (11.11.2013)

BTC preparing a “megaloan” The Bulgarian Telecommunications Company (BTC) will carry out a “road-show” in London this week, the company announced, as cited by Capital Daily. The BTC intends to take a “megaloan” from financial markets. Its management will decide on the potential issuance of EUR 400 million of euro-denominated bonds maturing in five years with their expected rating being Â1/ÂÂ-. The BTC will use the loan to refinance its existing debts. The BTC has specified the Irish Stock Exchange as its potential offering platform as the company has listed bonds for USD 150 million there. The global coordinators of the bonds emission will be Credit Suisse and VTB Capital, the intermediaries Barclays and Deutsche Bank, with co-manager Societe Generate. Since end-2012 the owner of BTC is a consortium between the majority shareholder of Corporate Commercial Bank (BTC) and the investment subsidiary of Russian VTB in London – VTB Capital.
Source: Capital (11.11.2013)

BEH transferred dividend to the state Bulgarian Energy Holding (BEH) transferred the dividend due to the state, after which the plan on this item is overflowing over 100%. In a special account of the National Revenue Agency and BNB have been imported BGN 423.4 million at provided BGN 333.1 million in the Act on the State Budget. By the end of the year there are more transfers expected, said the Ministry of Finance. The sum here is the result of deductions from profits made by 86 companies in which the state is a shareholder. Largest donor is the energy holding, which transferred BGN 205.8 million, or nearly half of the sum. The company had to fulfill its commitment to the budget in July, but because of demonstrated financial problems it given a delay.
Source: Capital (20.11.2013)

Reuters: Bulgaria to decide on third nuclear reactor by end of year The Bulgarian government will take a decision on the construction of a third reactor at its sole nuclear power plant Kozloduy, using U.S. technology, by the end of the year, its energy minister said on Saturday, Reuters reports. The Balkan country has hired Westinghouse to prepare a proposal for the new reactor, having shelved plans to build a new 2,000-MW plant at Belene on the Danube after failing to attract foreign investors to the 10 billion-euro project. "Bulgarian and American officials have discussed the construction of a new nuclear power plant reactor at Kozloduy," Energy Minister Dragomir Stoynev told reporters after returning from a visit to the United States. "The size of the investment needs to be established. We expect that a financial model will be drawn up within six months." Stoynev said he was preparing a report on the subject to be submitted to Prime Minister Plamen Oresharski for approval, adding that construction could begin in 2016 and would last at least four years. He said the state-owned Export Credit Bank of Turkey, known as Eximbank, had expressed readiness to finance up to 70 percent of the project and Bulgaria planned to keep nuclear energy as one of the key sources in its mix of power sources. Bulgaria is one of the few European Union counties pursuing new reactor projects in the wake of the Fukushima disaster in Japan in 2011 and Germany's move to phase out nuclear power. Some 35 percent of energy produced in Bulgaria comes from the 2,000 MW Kozloduy plant, but the licence of one of its two reactors expires in November 2017 and the other two years later. Without new construction, "Bulgaria will have no more nuclear capacity in 15 years", Stoynev said. "More than half of our thermal power plants will be closed. "What shall we do then? We cannot remain solely reliant on hydro power generation or renewable energy sources. Now is the time to start working on building new capacity." Russia offered to finance the Belene plant in 2006 but Bulgaria's former centre-right government turned down the offer because of concerns Moscow would gain control of the EU country's nuclear future.
Source: Capital (25.11.2013)

6 tons of hydrochloric acid disappear from "Polymers" state reserve 6 tons of hydrochloric acid from the State Reserve in "Polymers " - Devnia disappeared, the trustee of the bankrupt enterprise alerted. According to Ivan Balabanov, the two tanks, which stored the acid drained between November 12-13 with traces leading to the nearby sewer and the Varna lake. The chemical waste is dangerous and highly explosive and could blow the whole area into the air if it explodes due to a spark, Balabanov warned. With numerous building pull-downs and pipe cuttings, there are many dangerous activities in the area which could trigger such a spark with a potentially devastating effect. Despite the alerts, state institutions have not taken any step to stop the looting. The problems started even before the announcement of the bankruptcy of the "Polymers" AD on December 2012. Now there is nothing left for sale from the company, while the list of creditors is long. As first stands NPP Kozloduy with BGN 9 million claims, followed by a state debt of BGN 6 million. The company also owns BGN 1 million to its staff for the unpaid wages and benefits, the trustee pointed out.
Source: Standart (26.11.2013)

Bulgarian State Enterprises Accrue Debt of BGN 10 B Bulgarian enterprises with over 50% State stake have accrued total debt of BGN 9.9 B, according to Deputy Prime Minister, Daniela Bobeva. Speaking Tuesday, at a conference dedicated to management of State-owned enterprises (with over 50% stake), Bobeva said that there were 249 such enterprises in the country with a net profit of BGN 220 M (with the exception of the Bulgarian Energy Holding, BEH) and a debt of 9 B, of which 5 B were short-term debt. The Deputy PM announced that she has organized 2 months ago a work group for new legislation on State participation in the economy, stressing this initiative was part of the government's program to boost economic growth. Bobeva explained that as the privatization of most of the State sector has concluded, the focus now should be better management of the remaining State enterprises as they form a significant part of the country's jobs and of the Gross Domestic Product, GDP. Better management includes new ways to appoint Boards of Directors and a new dividend policy of the State.
Source: Sega (27.11.2013)

Construction of South stream in Bulgarian waters starts next spring Construction of the section of gas pipe South stream, which passes under the Bulgarian part on the Black sea, will start in the spring of 2014. At present near Varna only short research for technology under which the pipes will enter in the country are being made. This was announced by the international company South Stream Transport which is owner of the project in its sea part. At the moment a competition procedure for choice of a subcontractor is under way, too. The very putting of pipes will start in the second quarter of 2014. By then the company will be ready with construction permit. Under the plan of the project the four pipes of South stream will be situated at 930 kilometers on the sea’s bottom from Anapa in Russia to Pasha Dere. The plot in Bulgarian waters for reception of facilities is about 230 km long. This includes passing micro tunnels under the Varna beach Pasha Dere that are about 1km long.
Source: Capital (28.11.2013)

National Electricity Company with a new boss On the 26th of November Bulgarian Energy Holding took a decision to release of NEC’s Board of Directors Vladimir Inkov. He will be replaced by Ekaterina Istatkova. Istatkova has a long-term experience in State Energy and Water Regulatory Commission, where he headed department Economic analyses and regulatory auditing. A day later NEC’s Board of directors unilaterally chose for a new CEO the present member of the Board Yordan Jelev. It’s the fifth change in the management of National Electricity Company from the start of the year.
Source: money.bg (29.11.2013)

Former State Power Co CEO to Chair South Stream Bulgaria The CEO of Bulgaria's National Electric Company (NEK) Vladimir Inkov will be appointed as director of South Stream Bulgaria. Earlier Friday it was reported that Inkov has been released from his duties as NEK CEO for unspecified reasons. "In the process if my work with Mr. Inkov I saw that he is a very professional person. That is why I will be appointing him in charge of this exceptionally important project," Bulgarian Economy and Energy Minister Dragomir Stoynev told the BGNES agency. Stoynev however did not comment who is going to be appointed as new NEK director. According to BGNES, a probable replacement is Yordan Zhelev, who has served as NEK's board of directors chair. The news comes as the latest of a string of reshuffles in Bulgaria's state energy sector over the year. The construction of Bulgarian section of the South Stream pipeline, set to transport natural gas from Russia to Central Europe, was officially started in October.
Source: Capital (02.12.2013)

Bulgaria's govt plans to revive insolvent fertiliser plant Chimco Bulgaria plans to revive insolvent fertiliser plant Chimco, the economy ministry said. A financial plan for reviving the plant in Vratsa, in the northwest of the country, has been prepared, Dragomir Stoynev said, as quoted in a press release of the ministry on Saturday. He did not elaborate. Local daily newspaper Standart on Monday quoted Stoynev as saying that Bulgaria will invest some BGN 50 million in the plant. Chimco, which halted operations in 2003, used to be Bulgaria's biggest urea producer with an output capacity of 800,000 tonnes annually, accounting for approximately 3.5% of global production. The plant produced ammonia, carbon dioxide, argon and various types of catalysts, as well. It was declared bankrupt in 2004.
Source: Capital (03.12.2013)

EDCs want "access" charge for electricity generated from RES Enero-pro proposes an "access" charge for electricity generated from renewable energy sources (RES), the Chairperson of the Management Board of Energo-pro Sales and Manager of Energo-pro Energy Services Plamen Stefanov announced on Tuesday. This happened during a public discussion organised by the State Energy and Water Regulatory Commission (SEWRC) on the forthcoming issuance of licenses to electricity distribution companies (EDCs) as the so-called “coordinators of special balancing groups.” Energo-pro proposed a charge of BGN 4.90 per 1 MWh of hydroelectricity, around BGN 4 for electricity generated from biomass, over BGN 8 for solar power and around BGN 6 for wind power. EVN addressed a similar proposal. CEZ will request such a charge as well, but is has yet not estimated its amount, Duma daily reports.
Source: Standart (04.12.2013)

European Commission: South Stream bilateral deals breach EU law The bilateral agreements for the construction of the Gazprom-favoured South Stream gas pipeline – concluded between Russia, Bulgaria, Serbia, Hungary, Greece, Slovenia, Croatia and Austria – are all in breach of EU law and need to be renegotiated from scratch, the European Commission said on December 4. Speaking in the European Parliament, Klaus-Dieter Borchardt, director for energy markets at the European Commission, said the deals were in breach of EU law. "The Commission has looked into these intergovernmental agreements and came to the conclusion that none of the agreements is in compliance with EU law," Borchert said. "That is the reason why we have told these states that they are under the obligation, either coming from the EU treaties, or from the Energy Community treaty, that they have to ask for re-negotiation with Russia, to bring the intergovernmental agreements in line with EU law," he added. EU's Energy Commissioner, Gunther Oettinger, had just sent a letter to Russian energy minister Alexander Novak explaining the situation and asking him "to look positively" into the possibility of re-negotiating the deals with the countries concerned.These include EU members Bulgaria, Hungary, Greece, Slovenia, Croatia and Austria, as well as Serbia, which is a member of the Energy Community, an EU-backed international agreement covering former communist countries of Eastern Europe. "What I can say is the intergovernmental agreements will not be the basis for the construction or the operation of South Stream. Because if the member states or states concerned are not renegotiating, then the Commission has the ways and means to oblige them to do so. And South Stream cannot operate under these agreements," Borchardt insisted.
Source: Standart (05.12.2013)

Boyan Boev to be elected chairman of the state energy regulator: minister We took decision for the appointed of Boyan Boev chairman of the State Energy and Water Regulatory Commission (SEWRC) until the end of the mandate of Angela Toneva. Lilyana Mladenova will be appointed on the place of Mihail Dimitrov. That is what Minister of Economy and Energy Dragomir Stoinev said at a press conference, a reporter of FOCUS News Agency announced. “I was informed last night that Angela Toneva and Dragomir Stoinev have resigned. As far as I know their decisions are based on personal motives. There is huge tension in the State Energy and Water Regulatory Commission, but there is tension in the energy sector as well, because the system is misbalanced,” Minister Stoinev specified.
Source: Agency Focus (12.12.2013)

An influx of capital was the obstacle for complying with the regulation for deposits A sudden influx of capital in the end of November is the excuse of the major companies with state share from the energy sector in front of the Bulgarian Ministry of Economy and Energy, when they were asked why their money were still concentrated in one single bank. This is in breach with the regulation effective from December 4 and demanding more balanced distribution of capitals. Days before this date reports of companies like the Bulgarian Energy Holding (BEH), the National Electric Company (NEK), the nuclear power plant (NPP) Kozloduy and Bulgargaz show that the companies’ capitals continue to be concentrated in Corporative Commercial Bank, the daily writes.
Source: Capital (12.12.2013)

Bulgarian Govt Moves to Build New NPP Unit Bulgaria's Cabinet has approved the report of the Minister of Economy and Energy, Dragomir Stoynev, on the need to build a new unit at the country's only nuclear power plant. With it, the Minister receives mandate to instruct the Bulgarian Energy Holding (BEH) to negotiate with a strategic investor and with US energy giant "Westinghouse," which is to build a reactor with its technology. The public radio, BNR, reported Wednesday that Stoynev has given the following details of the decision: to negotiate with Japan's "Toshiba Corporation" an agreement for a strategic investor for the project and construction of a new unit at the nuclear power plant NPP "Kozloduy" with technology reactor with water pressure AP 1000-3 + of the "Westinghouse Electric Company" US. The Council of Ministers further instructs the Minister of Economy and Energy to organize, coordinate and control the negotiations for structuring and financing of the project "Building a New Unit at NPP "Kozloduy." The decision of the Council of Ministers was made on December 11 in implementing a decision of the Council of Ministers from April 11, 2012, (during the term of the previous government), which is an agreement in principle to take actions necessary to build a new reactor at NPP Kozloduy. The investment of "Toshiba Corporation" is forecasted to be up to 30% of the project cost. "There will be a tender for the construction, but not for the technology because if there is one, this means that the State should buy all produced electricity. I do not want to doom the next generation to long-term contracts, and the seventh unit of NPP Kozloduy will operate on market basis," said Stoynev. At the end of November, speaking after a working visit to the US, he informed that talks with US energy giant Westinghouse were forthcoming and the construction of the new unit at the Kozloduy NPP could start in 2016, provided that the negotiations were successful. Stoynev emphasized that Bulgaria had opted for a technology, not a country, by choosing Westinghouse, explaining that safety had been the primary concern in the decision to use US technology. The Minister stressed then that in the case of a failure to reach agreement with Westinghouse, Bulgaria would seek other options as the country needs to replace units 5-6 of the Kozloduy NPP before they are stopped in 20 years' time. The issue of a new unit at the NPP Kozloduy came up after the project for the construction of the NPP Belene was frozen by the center-right GERB government. The government headed by former Prime Minister Boyko Borisov stopped the implementation of the project over its high cost and decided to mount the reactor produced in Russia for the purpose at the NPP Kozloduy site. Meanwhile, Bulgaria is also striving to get an extension of the life of units 5, 6 of the Kozloduy NPP. The license of unit 5 of NPP Kozloduy expires in November 2017 and that of unit 6 in October 2019.
Source: Capital (12.12.2013)

Bulgaria, Westinghouse Ink Deal on Kozloduy NPP The state Bulgarian Energy Holding (BEH) and US company Westinghouse have inked a deal for coordination of parameters for a new reactor at Bulgaria's Kozloduy NPP. The contract was signed by BEH representatives and Westinghouse CEO Danny Roderick in the presence of Bulgarian PM Plamen Oresharski in Sofia Thursday Oresharski explained that the agreement sets a deadline of 9 months for preparatory work on the technical, financial and economic parameters of the project. He expressed his hopes that this preparatory work can be compeled ahead of that time. On his part, Westinghouse CEO Danny Roderick said his company is committed to efficiently and transparently complete the project, which he views as highly positive for Bulgaria's economic growth and energy security. The decision to negotiate with Westinghouse on the planned new Unit 7 of Kozloduy NPP was formally adopted by the Bulgarian cabinet on Wednesday, after plans for that were announced over the fall.
Source: Capital (13.12.2013)

Bulgaria eyes majority stake in troubled machine repair company Bulgaria's economy ministry and the state-run Bulgarian Energy Holding are holding preliminary talks on the acquisition of a majority stake in troubled industrial machine repair company Remotex-Radnevo. The move would make it possible to retain the workers and pay them their wages regularly, the ministry said in an statement made available to SeeNews on Friday. Remotex-Radnevo employs 561 and currently owes its workers some BGN 3.5 million in back wages, it added. "The economy ministry and BEH plan to rehabilitate Remotex-Radnevo, which would contribute to the company's sustained development in the long term," the ministry said. Remotex-Radnevo is one of the largest repair companies for heavy mining, transport and energy equipment in Bulgaria. According to Sofia-based Capital Daily, it was privatised by a local company Polet 21 in 2002.
Source: expert.bg (14.12.2013)

Bulgarian energy branch reshuffle: Ivan Jonchev named as new director of Bulgarian Energy Holding Financier Ivan Jonchev is the new director of the Bulgarian Energy Holding (BEH). He is taking the place of Bojan Boev, who resigned as he was elected President of the State Energy and Water Regulatory Commission on Wednesday. Ivan Jonchev has been a member of the Board of Directors of Mini Maritsa Iztok since October. His appointment is the latest chapter of the major reshuffle in the Bulgarian energy sector which started a few days ago. State Energy and Water Regulatory Commission President Angela Toneva handed in her resignation allegedly to become a governmental advisor. Bulgargas head Shishman Chaoushev also resigned last week, after only being appointed in November. His chair will be taken by Dafinka Iankova, the head of BEH's auditory body. Chaoushev, in turn, will become the new director of the Electricity System Operator.
Source: Novinar (16.12.2013)

Shah Deniz partners announce FID for Shah Deniz II gas project The Shah Deniz consortium announced on Tuesday the final investment decision (FID) for the second stage development of the Shah Deniz gas field in the Caspian Sea, offshore Azerbaijan, consortium co-venturer British Petroleum (BP) said. The FID triggers plans to expand the South Caucasus Pipeline through Azerbaijan and Georgia, to construct the Trans Anatolian Gas Pipeline (TANAP) across Turkey and to construct the Trans Adriatic Pipeline (TAP) across Greece, Albania and into Italy. Together these projects, as well as gas transmission infrastructure to Bulgaria, will create a new Southern Gas Corridor to Europe, BP said in a press release. The total cost of the Shah Deniz Stage 2 and South Caucasus Pipeline (SCP) expansion projects will be around $28 billion (20.3 billion euro), it added. A total of 16 billion cubic metres (bcm) per year of gas produced from the giant Shah Deniz field will be carried some 3,500 kilometres to consumers in Georgia, Turkey, Greece, Bulgaria and Italy. First gas is targeted for late 2018, with sales to Georgia and Turkey. First deliveries to Europe will follow approximately a year later. Offshore, the Shah Deniz project includes drilling and completion of 26 subsea wells and construction of two bridge-linked platforms. Onshore there will be new processing and compression facilities at Sangachal. In the shorter term, the Shah Deniz partners have agreed terms with Azeri state-owned oil and gas company SOCAR for expanding production through the existing facilities by 1.4 bcm per year. The production increase is already in progress and is expected to be completed by the end of 2014. SOCAR and the Shah Deniz partners have also agreed terms for extending the Shah Deniz Production Sharing Agreement (PSA) up to 2048. The Shah Deniz partners have agreed to undertake exploration and appraisal work on prospects within the PSA area. "Today’s decision means that gas sales contracts with nine European companies will now come into effect," BP said. As a result some 10 bcm per year of Shah Deniz gas are expected to be delivered for 25 years to customers in Italy, Greece and Bulgaria. In addition, some 6 bcm per year of Shah Deniz Stage 2 gas will be delivered to consumers in Turkey. All gas sales and transportation contracts will be managed by the Azerbaijan Gas Supply Company established by Shah Deniz co-venturers under the operatorship of SOCAR. Coincident with the FID, SOCAR purchased 6.7% equity in Shah Deniz and the South Caucasus Pipeline from Norway's Statoil, and BP purchased 3.3% equity in Shah Deniz and the South Caucasus Pipeline from Statoil. Both of these transactions are subject to conditions that are expected to be satisfied in 2014. The Shah Deniz co-venturers are: BP with a 28.8% stake, SOCAR with 16.7%, Statoil with 15.5%, France's Total with 10%, Lukoil with 10%, NICO with 10% and Turkish state-owned company TPAO with 9.0%. These percentages include the above-described purchases of equity from Statoil by BP and SOCAR, respectively, which are subject to conditions that are expected to be satisfied in 2014 for completion of the transactions. The TANAP partners are expected to be: SOCAR (68%), Turkish state-owned company BOTAS (20%) and BP (12%) following the purchase of TANAP interests by BOTAS and BP that are expected to be completed in 2014. The TAP partners are: SOCAR (20%), BP (20%), Statoil (20%), Fluxys (16%), Total (10%), Germany's E.ON (9.0%) and Switzerland's Axpo (5.0%).
Source: Capital (18.12.2013)

State-owned TPP seeks more money Almost a month after drawing a credit of over BGN 2 million, the state-owned Maritsa Iztok 2 TPP needs money again, shows a reference to the Public Procurement Register. The TPP seeks for a bank to lend BGN 50 million with maturity December 20, 2016. The plant will use the money to invest. On 19 November Maritsa Iztok 2 TPP borrowed BGN 2 million from CCB to cover the contribution to the Japanese Bank that had been granted as loans for rehabilitation of the facilities. Separately, since June the company uses BGN 20 mln loan for working capital. By this move the company has become the third state energy company in need of money to cover current needs after Bulgargaz and Kozloduy NPP. Maritsa Iztok 2 has received a loan of BGN 137 million in the middle of the year by its parent company BEH, according to the company's report. Maritsa Iztok 2 is second after Kozloduy NPP in cheapest electricity in the country. The company is also a major buyer of coal from Mines Maritsa Iztok.
Source: Trud (18.12.2013)

BEH gives BGN 191 million for South Stream without explanation Bulgarian Energy Holding will deposit BGN 191 million for capital increase of project company South Stream. This is evident from the invitation for the company’s General meeting. The announced term is 16th of December. The same sum will be provided by Gazprom, too. Cited explanation is funding of the second part of the company’s investment program for 2013. If the increase is made South Stream’s capital will become nearly BGN 400 million. Construction had to start in December but competition for contractor was frozen. The reason is that some of the candidates complained of the too short term - only two weeks, which were given for submission of offers. The total value of the Bulgarian section of the pipeline is assessed to EUR 4.1 billion
Source: Capital (19.12.2013)

Bulgaria officially authorises EC to lead negotiations on South Stream Bulgaria officially authorised the European Commission (EC) to lead the negotiations with Russia for the future construction of South Stream Gas Pipeline in Bulgaria. This happened after Bulgarian Energy Minister Dragomir Stoynev submitted a letter to EU Energy Commissioner Gunther Oettinger. The meeting between Mr Stoynev and Mr Oettinger in Brussels on Wednesday was cancelled and was rescheduled for early 2014. The meeting between Mr Stoynev and Mr Oettinger had turned into a game of “hide and seek”. EC warned bilateral agreements on South Stream construction between Russia and Bulgaria, Serbia, Hungary, Greece, Slovenia, Croatia and Austria violated EU legislation and had to be renegotiated.
Source: Standart (19.12.2013)

New development on the energy exchange The state has registered the company Bulgarian Independent Energy Exchange, which will be the operator of the stock market of electricity, said Minister Stoynev in an interview. A check in the Commercial Register showed that a company with such a name had not been registered and the Ministry of Economy and Energy did not respond to a request for more information on the topic. One person cannot appoint the management of network transmission operator while controlling manufacturing companies and supply, wrote in an open letter the private company Bulgarian Energy Exchange, referring to the EU directives. The reason is that it is assumed that the new company will be within the BEH. Bulgarian Energy Exchange claimed to have experienced partners such as the European bourse the European Power Exchange and the Italian company Edison. Both companies, however, have denied any connection with the Bulgarian company. Valentin Kolev, who until last week headed the State Electricity System Operator (ESO), explained that only ESO can be exchange operator and the exchange will start after the separation of ESO from NEK.
Source: Capital (20.12.2013)