NEK report first profit since 5 years National Electric Company (NEK) registered a profit for the first time in five years amid continuing losses in previous periods. From the BGN 800-million loss per year, NEC reported a tariff surplus of BGN 100 million in late December 2015, said MP Delyan Dobrev. National Electric Company still has a deficit of more than BGN 4 billion gained from previous decades, but now it will be reduced to BGN 3.9 billion, something that has not happened in a long time. The first payment from the state to NEK worth EUR 180 million was done a week ago, Dobrev added. According to him, the positive financial result was reached with two-time changes in the law. As a result was created Energy Efficiency Fund, which has taken a series of adequate measures. First, preferences of new RES were liquidated and they can no longer sell expensive electricity. Existing RES faced restrictions on the sale of expensive energy, from the preferentially paid 1250 hours so far were deducted 5% own needs of the RES. This limits the expensive energy to 1188 hours, saving BGN 50 million per annum.
Source: Monitor (04.01.2016)

Fourth attempt for sale of Chimco-Vratsa’s assets will be made in the beginning of the year Fourth consecutive attempt for sale of the bankrupt factory Chimko will be made. The tender for the sale of the enterprise will take place on the 20th of January. Minimum sought price in the new bidding will be BGN 11.7 million. In the last two attempts for sale of the factory’s assets the trustee tried to sell them initially for BGN 22 million. The last notice in November was for BGN 18.4 million. Those looking to purchase the assets of Chimco will have to submit a mandatory deposit of BGN 1 million. The first two attempts for sale were conducted through direct negotiations between the trustee and the candidates for the purchase of the plant, but they had not attracted investors’ interest. During the Cabinet Oresharski the idea to restore production plant in Vratsa came up, and for this purpose it had to be acquired by a specially created by the Bulgarian Energy Holding Company EIK EAD.
Source: econ.bg (04.01.2016)

Bulgaria’s Overgas Claims It Has No Overdue Debts to Gazprom The Bulgarian-Russian natural gas company Overgas claimed on Saturday that it has no overdue debts to any organizations, including Gazprom Export. This statement comes in response to the dispute between Overgas and Gazprom, which threatened to leave the customers of the former without gas supplies from January 1. On Wednesday, Bulgarian officials announced that they had received a copy of a letter from Gazprom informing Overgas that the Russian energy giant will halt gas supplies to the private company starting from January 1. Overgas claimed that it had not received such a letter. Following several extraordinary meetings on energy issues convened by Bulgarian Prime Minister Boyko Borisov, a solution to the crisis was found. On Thursday, state-owned Bulgargaz and Overgas reached an agreement that the former will provide gas supplies to the customers of the latter. Earlier on Thursday, the Russian foreign ministry had assured that it will not halt gas supplies to Bulgaria. As of Friday, gas supplies to all consumers in Bulgaria were running normally although reports suggested that Gazprom had halted them at midnight on January 1. The most likely causes for the dispute are overdue payments and unsettled commercial issues between Overgas and Gazprom.
Source: Sega (04.01.2016)

Bulgaria's Mini Maritsa Iztok should cut coal output to avoid risk of landslides Bulgarian coal mining complex Mini Maritsa Iztok should cut its output to 27 million tonnes of coal annually in the next three years to avoid landslides, local media reported, quoted the company's head. In 2015, the company was forced to produce over 32 million tonnes of coal which it supplied to the two thermal power plants operated by U.S. companies AES and ContourGlobal, said Mini Maritsa Iztok CEO Andon Andonov. According to Andonov, if the company maintains these output levels, it risks triggering a landslide in some of the pits, which would lead to a halt in production, which in turn would cause a disruption of power supplies. Mini Maritsa Iztok is a 100% state-owned sole-proprietor joint-stock company.
Source: 3e-news (04.01.2016)

Bulgarian Energy Regulator Launches Inspection of Overgas The Energy and Water Regulatory Commission (KEVR) announced on Wednesday that it is launching an inspection into Bulgaria's largest gas company Overgas. The extraordinary inspection will examine the implementation of the company's licence obligations and the financial state of Overgas. KEVR assured that it will continue to monitor the developments surrounding the dispute between Overgas and the Russian energy giant Gazprom, which threatened to halt gas supplies to the customers of the former from January 1. The chairperson of KEVR Ivan Ivanov is in constant contact with representatives of institutions and organisations in the energy sector and all interested parties committed to solving the issue. At the request of KEVR, hearings of representatives of the management of the state-owned Bulgargaz and Overgas Networks were held on Monday and Tuesday. The members were informed of the agreement reached between the two companies, which guarantees uninterrupted gas supplies to the end household and industrial customers of Overgas. KEVR highly appreciated the efforts of the Bulgarian Energy Holding (BEH), Bulgargaz, Bulgartransgaz and Overgas Networks in solving the issue. At the insistence of KEVR, Bulgargaz and Overgas made a commitment to inform the regulator of any changes to the situation. If the need arises, KEVR has readiness to fulfill its functions by taking actions in compliance with the acting legislation and within the framework of its competencies. On December 30 last year, Bulgarian officials received a copy of a letter from Gazprom to Overgas informing that gas supplies to the latter will be halted from January 1. According to reports, there were unsettled commercial issues between the two companies. On December 31, Bulgargaz and Overgas reached an agreement that the former will supply gas to the customers of the latter.
Source: econ.bg (07.01.2016)

Bulgaria's BEH to discuss 650 mln euro loan with 12 banks in mid-Jan Bulgaria's National Electricity Company plans to start discussions on January 14 with 12 banks which have shown interest to provide it with a loan of 650 million euro ($699 million), the country's energy minister said, as quoted by local media. In August, US companies AES and ContourGlobal signed agreements with the National Electricity Company, NEK, a unit of BEH, on a decrease in the prices at which it buys electricity produced by the two companies' thermal power plants. For its part, NEK pledged to pay back its overdue liabilities to the two plants. Also in August, energy minister Temenuzhka Petkova said that NEK owes the two plants around 900 million levs ($494 million/459.6 million euro) in total. In November, BEH sent to 25 international banks letters inviting them to provide it with a 650 million euro loan.
Source: Dnevnik (07.01.2016)

Tsvetan Vasilev made cessions in CCB for BGN 81 million. The majority owner of bankrupt Corporate Commercial Bank - Tsvetan Vasilev, made cessions, through which he is trying to save BGN 81 mln of his money in the CCB. This is clear from the list of cessions and interceptions made by individuals and companies with money in the bank after it was placed under the special supervision on June 20th, 2014. The company Bromak of Tsvetan Vasilev has asked five cessions totaling EUR 41.41 mln, or nearly BGN 81 million. Other companies associated with Tsvetan Vassilev, also arranged offsetting receivables. Among them are Sana Space Hotel Hissar, Health and Wellness, Corsi Mountain Resort, Kostenets HHI, Infrastructure Company, Partner Leasing, Planasat, Gypsum, Rousse Shipyard West, Telish. Military Factory Dunarit made interceptions for BGN 13.35 mln, EUR 33.25 mln and USD 7.7 mln. Grisha Ganchev firm Elite Petrol has made several interceptions for BGN 40 mln, EUR 2.7 mln and USD 12.7 mln. Another company of the businessman - Litex Motors, has made deals with BGN 47 million and EUR 15.5 mln.
Source: Standart (07.01.2016)

Bulgaria’s utilities regulator to probe private provider Overgas Bulgaria’s Energy and Water Regulatory Commission said on January 6 that it would check the “execution of licence duties and the financial situation” of Overgas, the private gas provider that has become embroiled in a public row over the past week after being cut off from Russian gas deliveries. At the same time, the regulator praised the efforts made by Overgas and state-owned Bulgarian Energy Holding, through its gas trading arm Bulgargaz and grid operator Bulgartransgaz, to “resolve the problem”. Last week, Overgas was notified by Gazprom Export, a subsidiary of Russia’s state-owned gas company Gazprom, that direct deliveries would be discontinued, instead the gas would be re-routed through Bulgargaz. This prompted a late-evening meeting between Prime Minister Borissov and executives from several state-owned companies in the energy sector on December 30 to discuss the issue and ensure that Overgas’ customers – 55 000 households and 3000 industrial clients – would not be left without gas.
Source: Dnevnik (07.01.2016)

American AES Maritsa Iztok ² waits for BGN 600 million from NEC Unpaid obligations of National Electricity Company to the American AES Maritsa Iztok ² has grown to BGN 600 million. Negotiations of Bulgarian energy holding with several banks for granting of an emergency loan of EUR 600 million are expected to be over in a matter of weeks. Money is needed for payment with American AES and Contour Global Maritsa East 3. Concern is the request of the state Mini Maritsa Iztok EAD-Radnevo coal production from open coal mines to be reduced. For 2016 the thermal plant has declared 5.2 million tons of coal which provide normal rhythm of operation at 60 percent loads of the equipment. In recent months, the plant operates with 70 percent load on its two blocks.
Source: Monitor (12.01.2016)

Bulgaria's Mini Maritsa Iztok mines invest 4.7 mln euro in equipment Bulgaria's energy ministry said on Monday that state-owned coal mining complex Mini Maritsa Iztok has invested BGN 9.2 million in new equipment. The new rotary excavator will reduce maintenance and operation costs, deputy energy minister Zhecho Stankov was quoted as saying in a press release. The funding was provided by the Kozloduy International Decommissioning Support Fund (KIDSF).
Source: Darik Radio (19.01.2016)

The electricity market will make real deals Bulgarian Independent Energy Exchange (IBEX) begins work in real time with real exchange transactions today, said the Minister of Energy Temenuzhka Petkova. So far it has worked in test mode. Exchange is part of the liberalization of the electricity market and had to go back in 2011, but its launch was postponed several times over the years. The latest delay was in December last year, when the stock exchange operator requested early test sessions to start on 11 December instead of December 8. Although late and in test mode, the exchange stopped the proceedings launched by the EC in 2012 against the Bulgarian Energy Holding (BEH) on suspicion of violation of the free electricity market. Due to the high preferential prices of electricity generated by the US power plants and RES's, the electricity that will be traded on the stock exchange will be from the three state companies - NPP Kozloduy, TPP Maritsa East 2 and NEK. Expected long-term contracts with producers and users of preferences for eurodirectives (RES and CHP) to also be included in stock exchange trading after the World Bank proposed a mechanism for compensating the difference between the market price of energy and their guaranteed return. This will happen in April, according to forecasts of Deputy Ministers of Energy, who participated in the awareness campaign for liberalization of the electricity market in December 2015.
Source: Duma (19.01.2016)

Bulgaria to Get EUR 850,000 Grant to Improve Gas Transmission Network Bulgaria will receive an EU grant of EUR 850,000 for the rehabilitation, modernization and expansion of its gas transmission system under the Connecting Europe Facility (CEF), an EU funding programme for infrastructure. The financing is part of allocations of almost EUR 180 M in CEF grants for studies and work relating to the construction of gas interconnections between Bulgaria, Romania, Hungary and Austria. EU Member States agreed on a Commission proposal on Tuesday to invest a total of EUR 217 M in key trans-European energy infrastructure projects, mainly in Central and South Eastern Europe. In total, 15 projects were selected following a call for proposals under the CEF, the European Commission said in a statement. Of the 15 proposals selected for funding nine are in the gas sector and six in electricity sector. “In the gas sector, the allocated grants will cover, among others, studies for modernising the Bulgarian gas transmission network which will improve the possibilities for the transport of gas in the region,” which will benefit particularly Greece, Romania, Macedonia and Turkey, according to the statement. Making available EU funding for the interconnector linking gas networks in Romania, Bulgaria, Austria and Hungary “is an important development for the EU gas market as this will allow gas from the Caspian region and other potential sources, including LNG, to reach Central Europe,” the European Commission said. The European Commissioner for Climate Action and Energy Miguel Arias Canete commented in the statement: ”With this funding we will help secure supplies and fully integrate Europe's energy market by connecting networks across Europe. We must press ahead with the modernisation of our energy networks to bring any country still isolated into the European energy market.”
Source: Monitor (20.01.2016)

Bulgarian electricty company NEK cuts loss to EUR 112.6 mln in 2015 Bulgaria's state-owned National Electricity Company, NEK, cut its loss by more than BGN 350 million to BGN 220 million in 2015, the country's energy minister said. Furthermore, the electric company for the first time turns to profit from its regulatory operations, energy minister Temenuzhka Petkova told the Government Meets the Business conference in Sofia, organised by business news publisher Capital on Tuesday. In August, US companies AES and ContourGlobal signed agreements with NEK on a decrease in the prices at which it buys electricity produced by the two companies' thermal power plants. For its part, NEK pledged to pay back its overdue liabilities to the two plants. Also in August, energy minister Temenuzhka Petkova said that NEK owes the two plants around BGN 900 million in total. In November, BEH sent to 25 international banks letters inviting them to provide it with a EUR 650 million loan. NEK is a 100%-subsidiary of state-operated Bulgarian Energy Holding.
Source: Monitor (20.01.2016)

Trade Unions Urge State to Facilitate at Least Partial Payment of Debts to Maritsa East Mines The Confederation of Independent Trade Unions in Bulgaria (CITUB) and the Podkrepa Confederation of Labour will insist that the State help the Maritsa East Mines out of its dire financial straits, CITUB President Plamen Dimitrov told a news conference here on Monday. Dimitrov specified that the two confederations will write to the Government, suggesting an option in which the Bulgarian Energy Holding (BEH) would be furnished with sovereign guarantees for a loan ensuring at least a partial payment of the Mines' 515 million leva-plus receivables. In the CITUB leader's words, a number of repairs at the Mines have not been carried out or have been done using makeshift materials, and the repair crews are forced to buy screwdrivers, hammers and other tools on their own money. The BEH is negotiating a 650 million euro loan with foreign banks, the proceeds of which are supposed to pay the amounts that the National Electric Company (NEK) owes the two US-owned power plants in the Maritsa East Complex: AES 3C Maritza East 1 EOOD and ContourGlobal Maritsa East 3 AD. This is a condition on which the two TPPs will pay the nearly 350 million leva that they owe the Maritsa East Mines for lignite. The Brikel TPP owes the Mines nearly 50 million leva, and the Maritsa East 2 TPP almost 60 million leva. "At the end of last year it emerged that foreign banks distrust the Bulgarian Energy Holding (BEH) and refuse to lend it 650 million euro without sovereign guarantees. No sovereign guarantees for the BEH are envisaged in the 2016 budget. Energy Minister Temenouzhka Petkova says the negotiations with the banks continue," the "Sega" daily wrote on January 20.
Source: offnews.bg (26.01.2016)

Bulgaria's TPP Maritsa Iztok 2 hires two local companies for 23 mln euro upgrades Bulgarian thermal power plant (TPP) Maritsa Iztok 2 has awarded contracts for furnace construction and isolation works worth a combined BGN 45.5 million to two local companies, a tender notice in the European Union’s procurement journal indicated. The contract winners are Energoremont Galabovo, a manufacturer of tubular heating surfaces for energy steam boilers, and Peshtostroy and Peshtostroy, a construction and repair company, the notice published on Wednesday in the Tenders Electronic Daily (TED) showed. The value of the deals does not include value added tax. Maritsa Iztok 2, a subsidiary of the state-run Bulgarian Energy Holding, has an installed capacity of 1,600 MW.
Source: Capital (08.02.2016)

Bulgaria's power exchange mulls adding natgas segment The Independent Bulgarian Energy Exchange (IBEX) is contemplating the addition of a natural gas trade segment, the country's energy minister said. "Our long-term priority is related to the diversification of sources and routes for gas supply, in particular with establishing gas transmission system interconnectivity, the development of local production, and the implementation of the concept for a gas hub," energy minister Temenuzhka Petkova said. However, only Russian gas will be traded on the IBEX initially, with plans to attract more suppliers in the future. Bulgaria imports almost all the gas it needs to cover its domestic needs via a single pipeline from Russia which passes through Ukraine and Romania. The day-ahead power exchange IBEX, developed in partnership with Norwegian-based Nord Pool Spot, was officially launched in mid-January.
Source: Trud (08.02.2016)

Former Bulgargaz CEO Petiyo Ivanov replaces Jacklen Cohen as member of the Board of Directors of BEH At a protocol decision of the Bulgarian Minister of Energy Temenuzhka Petkova, former Bulgargaz CEO Petiyo Ivanov replaced Jacklen Cohen as member of the Board of Directors of the Bulgarian Energy Holding (BEH), the press centre of the Ministry of Energy announced. At a meeting of the Board of Directors of BEH Petiyo Ivanov will be nominated for BEH Executive Director and Nikolay Pavlov for Executive Director of Bulgargaz EAD. Petio Ivanov worked as head of financial controlling and chief accountant of the National Electricity Company and Nikolai Pavlov was CFO and member of the Board of Directors of NEC. The changes are aimed at optimisation of the Bulgarian Energy Holding and enter into force upon entry in the Commercial Register to the Registry Agency.
Source: Monitor (10.02.2016)

By an official decision of Energy Minister Temenouzka Petkova, Bulgargaz Executive Director Petyo Ivanov will take the place of Jacklen Cohen as member of the Council of Directors of the Bulgarian Energy Holding (BEH), the Energy Ministry said in a press release Tuesday. At a meeting of the BEH Council of Directors, Ivanov will be nominated for BEH Executive Director, while Nikolay Pavlov will be nominated for Bulgargaz Executive Director. Ivanov has worked as financial control head and chief accountant at the National Electric Company (NEK), while Pavlov has been financial director and member of the NEK Council of Directors. The changes are aimed at optimizing BEH's work and become effective upon registration in the Commercial Register with the Registry Agency.
Source: Sega (10.02.2016)

Austria's Habau wins 4.5 mln euro tender to complete Bulgaria-Romania gas link Austrian construction company Habau has won a EUR 4.5 million gas link construction tender for the completion of Bulgaria-Romania pipeline. The deadline for the implementation of the project is 119 days, Bulgarian energy minister Temenuzhka Petkova said. The total length of the pipeline is 25 km, including 15.4 km on Bulgarian territory, 7.5 km in Romania and 2.1 km under the Danube river between the two countries. The maximum capacity of the interconnector will be 1.5 bln cu m per year. The entire gas link is estimated to cost EUR 24 million euro. Bulgaria imports about 90% of the natural gas it needs from Russia through a pipeline crossing the territories of Ukraine, Moldova and Romania.
Source: investor.bg (12.02.2016)

NEK Saves BGN 170 Mln Annually from Highly Efficient Energy and Lower Gas Prices The National Electric Company (NEK) saves 170 million leva annually due to the drop of the natural gas prices and the purchase of highly efficient energy, generated by the heating utility companies, Energy and Water Regulatory Committee (EWRC) Chairman Ivan Ivanov commented before journalists Tuesday. Ivanov explained that the economies from the purchase of highly efficient energy amount to 130 million leva and the ones from the lower natural gas prices bring additional savings of 40 million leva. Earlier on Tuesday EWRC had a meeting with the management of Bulgargaz, which is to submit its final estimate about the natural gas price for the second quarter of 2016 on March 10. "In my opinion, they will propose a reduction, which will be over one per cent higher than the current estimate of 20.64 per cent," Ivanov said. The European Commission has not yet pronounced itself on an EWRC report regarding the long-term purchase of energy from the US-owned plants of the Maritsa East energy complex. The Commission opinion is expected in the following months. Ivanov said he is optimistic that the Bulgarian Energy Holding will find the necessary credit so that NEK would be able to pay its obligations to the two US-owned Maritsa East thermo-electric power plants.
Source: Sega (17.02.2016)

Gazprom Announces New Gas Supply Route under Black Sea Russian energy giant Gazprom has said it signed a memorandum with Italy's Edison SpA and Greece's DEPA SA on gas deliveries. In a press statement, it has explained that according to the memorandum of understanding signed in Rome, gas will be delivered under the Black Sea "via third countries" to Greece and will be transported "from Greece to Italy with the ame of organizing the southern route of supplies of Russian natural gas from Europe." In practice, "third countries" could mean either Bulgaria or Turkey. The announcement is a major development that follows the demise of the South Stream gas pipeline in December of 2014 and the deadlock of its alternative Turkish Stream caused by tensions between Ankara and Moscow. Russian business daily RBC quotes Mikhail Korchemkin, who heads the East European Gas Analysis, as suggesting that the expression "third countries" in Gazprom's statement means mostly "Bulgaria". It has opined the press statement by Gazprom means a new Black Sea pipeline is now in the planning stage.
Source: 24 chasa (25.02.2016)

Eight Banks Place Binding Offers to Lend up to EUR 650 mln to Bulgaria’s BEH Eight banks grouped in two consortia have submitted binding offers to extend bridge financing of up to EUR 650 mln in total to the state-owned Bulgarian Energy Holding (BEH) group. The energy group is seeking the money to enable its indebted subsidiary National Electricity Company (NEK) to repay debt owed to the local units of U.S.-based AES Corporation and ContourGlobal. “All of the participants meet the criterion for extending a bridge loan facility, which at a later stage will be refinanced through a bond issue,” BEH said in a statement on Friday, as the deadline expired for submitting offers. The total financing on offer covers the amount sought by BEH (up to EUR 650 mln), the energy group added. Eleven financial institutions, including the eight which submitted binding offers, had taken part in direct negotiations for the selection of an investment consultant to advise the issuing of corporate bonds, BEH said. “A commission within BEH is assessing the submitted offers. The selected candidate would be invited for talks on concluding a bridge loan facility agreement,” BEH said.
Source: Darik Radio (29.02.2016)

During the first phase of the market test no traders stated interest to use the capacity of a Bulgarian-Greek gas interconnector. This prompted an extension of the deadline by one month until March 31. This has emerged from a decision of the Energy and Water Regulatory Commission which obtained permission from the Greek energy regulator. During a similar test in 2013-2014, as little as 1.2 billion cu m of the total 3 billion cu m capacity were reserved by Bulgargaz and Greece's DEPA. Bulgargaz confirmed to "Kapital Daily" that it will participate again but without more participants the economic viability of the project will be hard to prove to prospective creditors.
Source: Duma (09.03.2016)

Bulgaria’s BEH Ranks First Lending Offer of Banca IMI-Bank of China-J.P. Morgan Tie-up State-owned Bulgarian Energy Holding (BEH) group has said that it will invite a consortium of Âànñà IMI, Bank of China and J.P. Morgan Securities for talks on extending bridge financing of up to EUR 650 M to its indebted subsidiary NEK. The consortium comprising Âànñà IMI S.p.A. - London Branch, Bank of China Limited - Luxembourg Branch and J.P. Morgan Securities has been ranked first in the evaluation of the binding offers submitted by two candidates last month. “BEH EAD reserves its right at any time to invite the consortium ranked second for negotiations for concluding a contract,” BEH said in a statement on Wednesday. The maturity of the bridge financing is up to 12 months, with no collateral. The bridge loan will be refinanced through a subsequent placement of a bond issue. The proceeds from the bridge loan will be used to repay the accumulated debt of the National Electricity Company (NEK) to coal-fired power plants AES Galabovo and ContourGlobal Maritsa East 3 in order for the decrease in prices under the long-term power purchase agreements to take effect and to cover debt owed by the two power plants to Maritsa East coal mines. As of late February, NEK owed an estimated total of BGN 950 M (EUR 485 M) to the two power plants, while the palnts' outstanding debt to Maritsa East coal mines was estimated at BGN 340 M (EUR 174 M). AES Galabovo and ContourGlobal Maritsa East 3 are owned by U.S.-based AES Corporation and ContourGlobal, respectively.
Source: Capital (10.03.2016)

Bulgaria's Bulgargaz proposes revised 23% cut in Q2 wholesale gas price Bulgarian gas monopoly Bulgargaz proposed on Friday a 23.02% reduction of the wholesale price at which it sells natural gas to its clients as of April 1, revising its previous proposal, which envisaged a 20.3% cut. The tariff of BGN 312.21 per 1,000 cu m, proposed by Bulgargaz does not include value added tax and excise duties, the company said in a notice on its website. The adjustment in the wholesale tariff, made on a quarterly basis, must be approved by the energy regulator to take effect. Bulgargaz is a subsidiary of Bulgarian Energy Holding (BEH), which pools all state energy assets. Bulgaria imports almost all the natural gas it needs from Russia through a pipeline crossing the territories of Ukraine, Moldova and Romania.
Source: 24 chasa (12.03.2016)

NEK Gets Deadline Extension for Paying Its Dues to Maritsa East 1 and 3 Thermal Power Plants The deadline until which the National Electricity Company (NEK) has to pay its dues to the Maritza East 1 and Maritsa East 3 thermal power plants has been extended, Energy Minister Temenouzhka Petkova told journalists on Tuesday. Petkova did not specify the length of the extension. She expressed her optimism that NEK will be able to obtain the loan it needs to pay its liabilities to the two US-owned plants. "I think the whole procedure for securing a loan for NEK will be successful," she said. The Bulgarian Energy Holding (BEH), of which NEK is a subsidiary, has reached agreement on an up to 650 million euro bridge-to-bond loan with a consortium of Banca IMI S.p.A. - London Branch, Bank of China Limited - Luxembourg Branch and J.P. Morgan Securities. The proceeds of the loan will settle NEK's one billion leva debts to the Maritza East 1 and Maritsa East 3 thermal power plants which, in turn, will pay the 350 million leva they owe to the state-owned Maritsa East Mines. Subsequently, NEK will be able to pay a lower availability price to the two coal-fired plants. Petkova said: "The two plants have seen that the loan procedure is unfolding positively and there are banks willing to provide the money. The fact that eight global banks, forming two consortiums, participated in the bidding procedure was a test passed successfully by the Bulgarian energy sector." She said negotiations are now underway with the consortium which was selected to secure the funding sought by BEH. "I believe the parameters offered are within the normal limits," she said, expressing hope that the negotiations will be completed in about 10 days and then the sides will sign an agreement
Source: Dnevnik (16.03.2016)

Trading in Long-Term Contracts via Energy Exchange to Begin July 1 The Independent Bulgarian Energy Exchange (IBEX) will buy a platform for trading in long-term contracts, Energy Minister Temenouzhka Petkova said on Tuesday, addressing a conference on the liberalization of the national electricity market and the new trends in the sector. A few days ago the Bulgarian Energy Holding decided to increase IBEX' capital in order to enable it to buy the platform, she said. The platform for trading in long-term contracts is to begin functioning on July 1, Petkova said. The next step will be to purchase a one-day trading platform in the first quarter of 2017. Another major challenge is to build an IBEX segment for trading in natural gas. "We are considering this possibility. It is very important to develop the gas market. We will work to this end," Petkova said. Speakers told the conference that the country's largest private energy companies will establish a National Energy Chamber. According to Petkova, the future chamber will have a reliable partner in the Energy Ministry. The members of the new organization will include the Bulgarian Photovoltaic Association, the Bulgarian Wind Energy Association, the Hydropower Association, EVN Bulgaria, AES Bulgaria, Energo-Pro, ContourGlobal and CEZ Bulgaria. The chamber will have a general assembly and a management board, and will be co-chaired by Robert Dick, Management Board Chairman at EVN Bulgaria, and Olivier Marquette, Managing Director of AES Bulgaria. Marquette said the new National Energy Chamber is designed to assist the dialogue for reform in the energy sector. He believes that employers in the energy sector can contribute to the industry's stability and market liberalization. Dick said the chamber's contribution will consist in sharing knowledge, experience and professional solutions.
Source: BTA (23.03.2016)

If the deal with the state-run National Electricity Company (NEK) fails, we will be forced to take the matters to court, Olivier Marquette, CEO of energy company AES Bulgaria said. Marquette referenced the agreement that AES signed with the state-owned company a year ago, which would guarantee that NEK would pay the BGN 600 mln it owes. In exchange AES Galabovo TPP will introduce a discount to its availability price. The power plant will also be able to pay the state-owned Maritsa East Mines. Marquette stated that the loan negotiation process of NEK’s parent structure – the Bulgarian Energy Holding (BEH) – were in their final phase. He said he expected the deal to be finalised in April. Recently AES Bulgaria, together with a number of major energy producers and electricity distribution companies, created the National Energy Chamber (NEC), which in Marquette’s words will be working towards legal representation of energy producers in Bulgaria.
Source: Novinar (29.03.2016)

From next year gas deposit in Chiren will accommodate twice bigger amount of natural gas. This will fully cover domestic consumption for 6 to 8 months, the executive director of Bulgartnasgaz Georgi Gegov said. With the support of the European Commission Mechanism for cross country cooperation the company has won funding of EUR 220 million to double the flow of the deposit - that means acceleration from 550 million to slightly over 1 billion. Bulgartransgas will put into operation the reconstructed compressor station Strandja. The station, located near the border with Turkey is very important for the transit of natural gas.
Source: National radio (11.04.2016)

Miners want a new price of coal Mini Maritsa Iztok EAD - Radnevo wants a new price of mined coal higher by about BGN 9 per ton oil equivalent. The management of the state company has developed a new business programs for the next three years, which provides a yield of 27.35 million tons. This will allow them to catch up in the stripping and to implement the program for modernization and rehabilitation of heavy equipment. The program was returned by the Ministry of Energy for additional details. In recent years, opening of new stripping lags off dramatically behind the extraction. The reason is the loading of the two US power plants by ESO, admitted the president of CITUB Plamen Dimitrov. He expects the agreement between BEH and the bank consortium to be signed, which would bring a loan of BGN 1 billion. BGN 900 million will settle the debts to the two US plants, which in turn will finally pay back the mines.
Source: Monitor (18.04.2016)

NPP Kozloduy with contracts for more than BGN 40 million with public companies Two public companies-Atomenergoremont AD and Energoremont Holding have struck contracts for more than BGN 40 million for public procurement of NPP Kozloduy. The largest of them is worth BGN 28.028 million and is concluded by Atomenergoremont. The object of the contract includes repairs related to resource management and extension of the operation of equipment and systems of fifth and sixth nuclear power units. The public company has struck still another contract, this time for BGN 2.578 million. For its part Energoremont Holding has signed a contract for BGN 12.46 million for repairs to maintain the reliability of the equipment and pipelines, repair and ancillary activities improving the operating conditions of the fifth and sixth nuclear power units.
Source: profit.bg (21.04.2016)

Electricity price jumps with BGN 5 per megawatt hour due to loan Elctricity will cost BGN 5 more per megawatt hour from 1 July just because an EUR 650 mln. loan of the Bulgarian Energy Holding (BEH) taken for the National Electric Company (NEC) on April 25. KEVR will recognize NEC's costs of servicing the loan, which will be provided to BEH to settle its obligations to the two American thermal power plants in the energy complex "Maritsa East", regulator KEVR chairman Ivan Ivanov explained. As a result, the interest on the loan will pump up the price of electricity. KEVR only determines prices for the regulated market that is within 14 million. MWh annually. The interest on the loan taken by BEH of a banking consortium will be around BGN 68 million per year. To reduce the imbalances, NEC has already submitted a proposal to KEVR to raise the so called 'Obligations to society " additive with more than 28% to BGN 47.41 lev for megawatt hour.
Source: Standart (22.04.2016)

Bulgarian Energy Holding swings to BGN 29.5 mln cons net profit in 2015 Bulgarian Energy Holding (BEH), which pools all state-owned energy assets, turned to a consolidated net profit of BGN 29.5 million in 2015 from a loss of BGN 277.4 million in 2014. Among BEH's nine subsidiaries, gas transmission operator Bulgartransgaz recorded the highest profit of BGN 93.2 million, up 23.1% from 2014, followed by nuclear power plant (NPP) Kozloduy with BGN 82.4 million, up 6.1%. The slight improvement in Kozloduy's results came on the back of an increase of its output for the non-regulated market, energy minister Temenuzhka Petkova told a news conference. The net profit of the Electricity System Operator (ESO) more than tripled to a record high of BGN 63.1 million in 2015 from 19.6 million levs in 2014 mainly due to a 10% cut in administrative expenses, which contributed BGN 42 million to the company's profit. Monopoly gas supplier Bulgargaz managed to quadruple its profit to BGN 20.4 million in 2015. Troubled NEK, which acts as a link between electricity producers and distributors, slashed its net loss by 66.5% to BGN 196.7 million in 2015. It recorded a profit of BGN 39 million for the first quarter of 2016. On the negative side, the net loss of thermal power plant Maritsa Iztok 2 more than doubled to BGN 72 million in 2015 from BGN 35 million in 2014, as costs rose faster than revenues. The profit of coal miner Mini Maritsa Iztok dropped 39.4% to 2.6 million levs despite a record high output of 32 million tonnes of coal in 2015. The Independent Bulgarian Energy Exchange (IBEX), which launched operations in January 2016, accumulated a loss of BGN 214,000 in 2015, but recovered to a net profit of BGN 600,000 in the first quarter of 2016.
Source: Monitor (26.04.2016)

AES announces settlement of outstanding receivables at Maritza in Bulgaria The AES Corporation announced that one of its subsidiaries, AES 3C Maritza East I (Maritza) in Bulgaria, has received EUR 309 million (USD 350 million) in outstanding receivables from NEK, the state-owned wholesale power company, Business Wire reported. This payment was related to the amendment to Maritza’s Power Purchase Agreement (PPA) signed in August 2015. Maritza will use the majority of the proceeds to pay the local coal mine that supplies the plant, as well as repay the lenders of the plant’s non-recourse debt. “As a direct result of the steps taken by the Government of Bulgaria to strengthen the financial position of NEK, Maritza has received full payment of its outstanding receivables,” said Andres Gluski, AES President and Chief Executive Officer. “Maritza is one of the most reliable and cleanest coal-fired plants in Europe, using only domestically sourced fuel. By meeting all of its contractual obligations, Bulgaria is sending a very positive sign to all foreign investors in the country.” Under the amendment, both parties agreed to make certain changes to the PPA, including reducing the capacity payment to Maritza by 14 percent through 2026, the PPA term. In exchange, NEK agreed to pay Maritza its full outstanding receivables. These terms were previously incorporated in the Company’s 2016 guidance and 2017-2018 expectations. “The resolution at Maritza is another step in our efforts to improve the stability of our financial results,” said Tom O’Flynn, AES Executive Vice President and Chief Financial Officer. “With our progress to-date and our outlook for the remainder of 2016, we remain on track to deliver on our financial and strategic objectives.”
Source: Monitor (28.04.2016)

Bulgaria's NPP Kozloduy Q1 pre-tax profit drops 42% y/y Bulgaria's sole nuclear power plant (NPP) Kozloduy posted a 42% annual drop in its first quarter pre-tax profit to 36.8 million levs ($21.6 million/18.8 million euro). The company's total revenues edged down by an annual 2.4% to 222.6 million levs through March, with 98% of them stemming from electricity sales, it said in its quarterly financial report earlier this week. At the same time, total costs rose 13% to 185 million levs. The nuclear plant's gross electricity output fell 0.8% to 4.4 million MWh in the first quarter, mainly due to warmer weather. It sold a total of 4.18 million MWh, also down 0.8% year-on-year. In the first quarter, NPP Kozloduy sold a total of 174,847 MWh worth 9 million levs on the Independent Bulgarian Energy Exchange (IBEX), which was launched in January. Kozloduy NPP's investments in the period under review totalled 14.3 million levs.
Source: Standart (09.05.2016)

Bulgarian state-owned utility NEK posts 55% y/y growth in Q1 pre-tax profit Bulgaria's state-owned National Electricity Company, NEK’s first quarter pre-tax profit jumped 55.4% on the year to BGN 39 million. The company's total revenues fell by an annual 5.2% to BGN 862.2 million in January-March, while total costs declined 6.9% to BGN 823.2 million. Earnings before interest and taxes (EBIT) rose 28.9% to BGN 53.3 million, whereas earnings before taxes depreciation and amortisation (EBITDA) climbed 20.4% to BGN 67.9 million. NEK's hydropower plants produced a total of 759,230 MWh of electricity through March, down 50.5% year-on-year due to lower water levels and reduced demand. The company bought 5.4 million MWh of electricity from domestic power producers, down 14.5% year-on-year, and sold a total of 5.9 million MWh to domestic electricity distributors, down 24.5% year-on-year. Despite the improved profitability, the company is still facing difficulties to repay its debts to suppliers. As at end-March, NEK's long-term liabilities stood at BGN 1.27 billion and its short-term liabilities amounted to BGN 2.07 billion. Last month, NEK repaid its long overdue debts of some BGN 1.0 billion to two US-owned thermal power plants, paving the way for a reduction in the prices at which it buys electricity produced by them. In 2015, NEK, cut its loss by more than BGN 350 million to BGN 220 million.
Source: Capital (09.05.2016)

BEH turned debt of BGN 49.5 million of Maritsa Iztok 2 into capital Measures to improve the financial situation of the state-owned Maritsa Iztok 2 that Energy Minister Temenuzhka Petkova had announced went into action. They are not any special strategy and optimization, but the simplest solution - conversion of outstanding debt into ownership. By decision of the Board of Directors of the Bulgarian Energy Holding (BEH) of 15 March this year, the capital of the plant was increased by BGN 49.55 mln by issuing BGN 4.955 mln ordinary registered shares with a nominal value of BGN 10. The means by which this happened was through apportion of a loan of BGN 65 mln. It was granted by BEH to Maritsa Iztok 2 in July 2013 to cover "disproportions in the cash flows of the TPP". The term of repayment of the loan was two years, and the interests that the plant owes are just over BGN 2 million. At the end of 2015 the amount receivable was BGN 56 mln, according to the annual report of BEH. The decision has already been entered in the Commercial Register, bringing the total capital of the company to the amount of BGN 89.6 mln.
Source: Capital (11.05.2016)

Bulgaria's Bulgargaz proposes 10% cut in Q3 wholesale gas price Bulgarian gas monopoly Bulgargaz said on Tuesday it will propose a 9.97% reduction of the wholesale price at which it sells natural gas to its clients as of July 1. The tariff will hence go down by 31.13 levs to 281.08 levs ($177.1/163.27 euro) per 1,000 cu m, VAT and excises excluded, reflecting projected lower prices of gas supplies and the depreciation of the Bulgarian lev against the U.S. dollar, the company said in a notice on its website. According to the local regulations, Bulgargaz will submit its final pricing proposal to the energy watchdog on June 10. The regulator has to decide on the wholesale tariff, which is adjusted each quarter, by the end of June. Since the beginning of 2015, Bulgaria's gas prices have dropped by 48%. Bulgaria imports almost all the natural gas it needs from Russia through a pipeline crossing the territories of Ukraine, Moldova and Romania. Bulgargaz is a subsidiary of Bulgarian Energy Holding (BEH), which pools all state energy assets.
Source: Trud (11.05.2016)

Bulgarian miner Mini Maritsa Iztok invests EUR 26 mln in equipment Bulgaria's economy ministry said on Thursday that state-owned coal mining complex Mini Maritsa Iztok plans to invest EUR 26 million in two rotary excavators. The contract, which will be signed on Friday, includes the design, manufacturing, delivery and installation of the new equipment. Funding for the investment has been provided by the Kozloduy International Decommissioning Support Fund (KIDSF), administrated by the European Bank for Reconstruction and Development (EBRD). In January, Mini Maritsa Iztok spent BGN 9.2 million provided by KIDSF on a in new rotary excavator in order to reduce its maintenance and operating costs.
Source: Monitor (25.05.2016)

Bulgarian Energy Holding looking for three banks for the Independent Bulgarian Energy Exchange Bulgarian Energy Holding announced a competition for choice of financial institutions (servicing banks) for rendering of financial services for the needs of Independent Bulgarian Energy Exchange. The aim of the procedure is to select five financial institutions that serve the activity of IBEX. The object of the contract is not divided into lots and the participants should be involved to implement the entire order. One of the requirements to candidates is equity funds to be not less than BGN 150 million as of the first quarter of 2016. Deadline for submission of bids is June 6, 2016. At the moment BEH is major shareholder in IBEX, but according to assumed by the holding commitments to the European Commission by June 14 it should go to the Finance ministry.
Source: Monitor (25.05.2016)

NEK has paid a total of BGN 1.1 billion to the US power plants Maritza Iztok 1 and 3. About BGN 1 billion of this amount is provided by the loan which BEH took from an international banking consortium. The remaining funds come from own revenues of NEK, according to a written answer by Energy Minister Temenuzhka Petkova to an opposition lawmaker. Clearing obligations of NEK to the two plants was necessary so that the agreed reduction of electricity prices, sold by the TPPs, last year may enter into force.
Source: Sega (26.05.2016)

Moody's Upgrades Bulgarian Energy Holding's Rating Moody's Investors Service has assigned a provisional Ba1 corporate family rating to the Bulgarian Energy Holding EAD (BEH), with a stable outlook. "This provisional rating is subject to the successful completion of the issuance of new notes as currently contemplated by BEH," with a definite rating to follow once the process is completed and a review has been conducted of the documentation. "A corporate family rating (CFR) is an opinion of the BEH group's ability to honour its financial obligations and is assigned to BEH as if it had a single class of debt and a single consolidated legal structure. Any debt issued by BEH would likely be rated lower than the CFR given the structural subordination of the creditors at the holding company. However, the potential notching will depend on the actual balance between the debt at the operating companies versus BEH," Moody's explains. Factors taken into account include BEH's "dominant position within the electricity generation industry in Bulgaria," an improving financial profile, and the ownership it holds of the country's main gas transit and transmission and electricity transmission assets. Volatile earnings, uncertainty about the full liberalization of the wholesale power market and its impact on BEH, "relatively un-transparent nature" or regulations and weak liquidity management policy, however, are putting constraint on the rating. Upward change in the rating has limited potential due to "significant uncertainty over the timing and nature of any liberalisation of the wholesale electricity market," Moody's argues. At the same time, several factors could trigger a downgrade, such as the reversal of "positive regulatory changes" adopted in 2015 that would cause further deficits, changes in the operating environment leading to a deterioration in BEH's financial profile, a reassessment of the estimate of high support from the government, and a downgrade of the government rating itself. BEH is the 100% state-owned electricity and gas utility in Bulgaria which owns around 50% of the electricity generation facilities in the country, including the 2 000 MW Kozloduy nuclear power plant, 2 713 MW of hydro plants, and a lignite plant using input fuel sourced at BEH-owned mining facilities. Through its subsidiary Natsionalna Elektricheska Kompania EAD (NEK), it is the single trader on the regulated wholesale power market. It also owns and operates the high voltage electricity transmission grid and the gas transmission and transit networks in Bulgaria, and is also the main regulated wholesale gas supplier.
Source: Monitor (30.05.2016)

Bulgaria, Greece form task force to build Greek LNG terminal Bulgarian state energy holding company BEH and Greek natural gas company Gastrade have set up a joint task force to prepare a proposal to build an off-shore liquefied natural gas (LNG)terminal in northern Greece, Gastrade said on Tuesday. Greece currently has one LNG terminal on an islet off Athens and Gastrade, part of Greek energy group Copelouzos, is planning a second LNG terminal near the northern city of Alexandroupolis. The task force will prepare and submit a proposal to the Bulgarian government for the best possible way to take part in the project, Gastrade said in a statement. The facility, with an estimated annual capacity of 6.1 billion cubic metres (bcm), will seek to supply gas to southeastern Europe via another natural gas pipeline scheme that will cross through Greece, the Interconnector Greece-Bulgaria (IGB). Bulgaria and Greece signed the final investment agreement for the pipeline last year. The IGB and the LNG terminal fit with the construction of the Trans-Adriatic Pipeline (TAP) which will transport Caspian gas to European markets and was signed off by Greece and its partners this month. The Alexandroupolis terminal is expected to cost about 370 million euros ($413 million) and is expected to be operational at the end of 2018, an official at Gastrade told Reuters. Cheniere Energy, a U.S-based liquefied natural gas (LNG) exporter, is interested in a minority stake in the LNG project, a senior company official said last year. ($1 = 0.8967 euros) (Reporting by Angeliki Koutantou, editing by David Evans)
Source: Capital (01.06.2016)

Bulgarian lender DSK gives EUR 58 mln short-term loan to Czech Energo-Pro local unit Bulgaria's second biggest lender DSK Group said on Wednesday it has extended a BGN 114 million short-term loan to Energo-Pro Varna, a unit of Czech power group Energo-Pro. The loan has a floating interest rate equal to the one-month Sofibor plus 1.30% annually, DSK told SeeNews in an email. The financing has been provided for a 6-month period and the company has pledged its assets as a collateral. According to a report by local Capital Daily, the loan will be used for refinancing of old debt. Energo-Pro Varna is an electricity distribution and power supply company and generator of electricity from renewable energy sources. It provides distribution and electricity supply services in northeastern Bulgaria.
Source: Capital (22.06.2016)

Bulgaria may have to sell Bulgatransgaz or face up to 300 mln euro EU fines Bulgaria's prime minister Boyko Borissov said on Wednesday that the country may have to sell its gas transmission system operator Bulgatransgaz, or else face an EU infringement procedure that could cost it up to 300 million euro ($333 million). “[...] when Commissioner [for competition] Margrethe Vestager comes and says, 'You should sell Bulgatransgaz,' for us this would be a heavy political blow [...] Otherwise, an up to 300 million euro infringement procedure against Bulgaria may follow," Borissov told a news briefing in Brussels. An audio file of his words was circulated by the government's press office. Approached for a comment, a European Commission spokesman said it has not yet reached a final decision on the matter. "The Commission's antitrust investigation is ongoing. In March 2015, the Commission sent a statement of objections to Bulgarian Energy Holding, informing it of the Commission's preliminary view that BEH may have breached EU antitrust rules by hindering competitors’ access to key gas infrastructures in Bulgaria," the spokesman said, adding that BEH has sent a written response to the Commission's objections. "The Commission has not yet reached a final decision. As is common practice in antitrust investigations, Commissioner Vestager has met with Bulgarian counterparts to discuss the state of play of the investigation," the spokesperson added. In March 2015, the European Commission said it had sent a statement of objections to state-owned BEH and two of its units, informing them that they may have breached EU antitrust rules. At this stage, the Commission had concerns that BEH, Bulgartransgaz and gas monopoly Bulgargaz had refused to give competitors access to the gas transmission network and the gas storage facility, as well as reserved capacity they do not need on the gas import pipeline. "If the concerns are justified this behaviour would have reduced and continues to reduce competition in gas supply markets in Bulgaria," the Commission noted at the time.
Source: Capital (30.06.2016)

CEO of Bulgaria's Kozloduy Nuclear Plant Replaced The chief executive of Kozloduy Nuclear Power Plant (NPP), Dimitar Angelov, has been dismissed. The decision was taken by the Board of Directors at the Bulgarian Energy Holding (BEH), the entity bringing together state-owned energy assets, BEH's own website says. Ivan Andreev, who was deputy to Angelov, has taken over. BEH cites the fact that Angelov's term expired on July 03 (the latter assumed office in September 2014). But the development comes days after allegations from Georgi Kadiev, a former socialist lawmaker who recently set up his own party, that Angelov was tangled in corruption practices, inflating prices for repair works at Kozloduy NPP and having set up a Seychelles-based offshore company. Angelov, who also headed the nuclear plant in 2008-2009, has not yet commented. His successor's experience at Kozloduy NPP dates back to 1990. Andreev has been one of the deputies to Angelov since October 2014.
Source: Monitor (06.07.2016)

Bulgaria signed with a consortium consisting of Germany's Nukem Technologies and four local companies a contract worth BGN 140 million for the first stage of a project for the construction of a nuclear waste depository project. The funding for the project will be provided by the Kozloduy International Decommissioning Support Fund (KIDSF). The KIDSF facility, administered by the European Bank for Reconstruction and Development, was set up with EU funds to support projects related to the decommissioning of four nuclear reactors at Kozloduy nuclear power plant as well as to supports projects for restructuring and upgrades in Bulgaria's energy sector. The nuclear waste depository will be built at the Radiana site near Kozloduy plant and will have a capacity of 138,200 cu m. It is expected to be operational in 2021. The project will speed up the process of decommissioning of the plant's units which have been closed down.
Source: Monitor (08.07.2016)

Bulgarian energy holding’s capital increased by BGN 97.446 million Capital of Bulgarian energy holding (BEH) is increased by BGN 97,446 million. Funds come from net profit of the holding company, after prior that dividend for the state was detached. BEH’s profit for 2015 is to the amount of BGN 128,397 million. After taxes it is BGN 124,664 million. The profit is formed mainly by revenues of BEH by dividends of its subsidiaries, which accumulated profits. From the net profit 10% is allocated to the reserves fund, as other BGN 14.751 million is deposited as dividends in the state treasury. The size of the dividend is humble, as it is calculated as 50% of the holding’s net profit, defined at consolidated base. That is to say, after net profits and losses of companies within the holding are excluded. So with the remaining amount of BGN 97.446 million BEH increased its capital. The issued shares are at the same number, with a nominal value of BGN 1.
Source: Monitor (11.07.2016)

CEZ Group files arbitration claim worth hundreds of millions of euro against Bulgaria Czech power utility CEZ Group said it has filed a request for international arbitration worth hundreds of millions of euro against Bulgaria over its failure to observe the investment protection provisions of the Energy Charter Treaty. "The situation in the Bulgarian energy sector is critical and especially the pricing decisions of the local regulator have not been, on a long-term basis, in line with the expectations at the time of the privatization process," the group said in a press release on Tuesday. "Therefore, businesses operating in the energy sector have in recent years faced declining profitability or losses and low liquidity," it added. CEZ has repeatedly asked the Bulgarian government for speedy rectification of the current state of affairs and for compensation for the damage caused, it added, recalling that in November it sent a dispute notice to the country's government, in which it requested amicable settlement of the dispute. In 2014, Bulgaria's energy regulator launched a procedure to revoke the licences of the power distribution units of CEZ and two other power utilities operating in the country for retaining payments to the National Electricity Company (NEK). The power distributors said they owe debt-ridden NEK nothing, claiming that it had failed to pay them compensations for being obliged to buy electricity generated by wind and solar power installations. The regulator's decision to revoke the power distribution companies’ licences prompted European energy commissioner Guenther Oettinger to send a warning letter to Bulgaria's energy ministry in connection with the country's policy in the electricity sector. A year earlier a hike in electricity prices led to mass protests and eventually to the collapse of the centre-right government in the country. CEZ Group entered the Bulgarian market in 2004. Its distribution and sales businesses serve some 3 million customers there, mainly in the western part of Bulgaria. Its unit CEZ Razpredelenie Bulgaria posted a net profit of 21.7 million levs ($12.3 million/11.1 million euro) for 2015, more than five times larger than a year earlier. CEZ Electro's net profit fell three times to 8.7 million levs last year. The group also owns a coal power plant in the coastal city of Varna that temporarily ceased operations in January 2015.
Source: National radio (13.07.2016)

Bulgaria's IBEX seeks 2 mln euro working capital loan The Independent Bulgarian Energy Exchange (IBEX) is seeking a BGN 4 million loan in the form of overdraft to be used for repayment of debt related to company's commercial activities. The loan would be repaid in 36 months. Interested parties should submit applications by July 17. In June IBEX published a notice seeking a working capital loan with the same parameters. IBEX was established in January 2014, as a fully-owned subsidiary of the Bulgarian Energy Holding. It was developed in partnership with Norwegian-based Nord Pool Spot and has been operating since January 19.
Source: investor.bg (14.07.2016)

Bulgarian Energy Holding to start bond roadshow on July 18 The Bulgarian Energy Holding (BEH), which pools all state-owned energy assets, said on Thursday it has mandated JP Morgan and Banca IMI to hold in Britain and continental Europe starting on July 18 a roadshow for a bond, whose proceeds should go to repay a 535 million euro ($594.3 million) bridge loan. "A Reg S only intermediate tenor benchmark offering, which is expected to be rated (Ð) Ba2 by Moody’s and BB- by Fitch may follow, subject to market conditions. FCA / ICMA stabilisation applies,” BEH said in a press release. In March, BEH selected a tie-up of Âànñà IMI - London Branch, Bank of China - Luxembourg Branch and J.P. Morgan Securities to provide it a bridge loan of up to 650 million euro ($716 million). The loan was to be extended for a period of up to 12 months and refinanced by a bond issue, to be managed by the same bank consortium. A month later, BEH finalised a 535 million euro bridge loan deal to settle the overdue debts of its troubled subsidiary NEK. NEK used the loan to repay its debts to two local thermal power plants, owned by U.S. operators AES and ContourGlobal. In June, however, the International Court of Arbitration ruled that NEK should pay 620 million euro ($693.5 million) to Russia's Atomstroyexport as a compensation for scrapping a nuclear power plant construction project. In return, NEK will receive the nuclear equipment it had ordered, but not paid. Earlier this month Fitch ratings affirmed BEH's long-term foreign and local currency Issuer Default Ratings (IDR) and its foreign currency senior unsecured rating at 'BB-', with a negative outlook. The agency has also assigned BEH's upcoming Eurobond an expected foreign currency senior unsecured rating of 'BB-(EXP)'. "The affirmation reflects BEH group's substantially improved funds from operations (FFO) in 2015 and 2016 from a very low level in 2014 thanks to various legislative and regulatory changes implemented during 2015 and successful renegotiations of power purchase agreements (PPAs) with two thermal power plants," it said at the time. "The negative outlook reflects BEH's insufficient liquidity to cover short-term debt maturing mostly in April 2017 and negative free cash flow (FCF) projected by Fitch. After the long-term bond issue planned for 3Q16, liquidity should cover short-term debt and negative FCF, which is likely to lead us to revise the outlook to stable from negative," Fitch also said. Following the planned bond issue and bridge loan repayment, the next large debt maturity is in November 2018 when BEH's 500 million euro bond issued in 2013 matures. "We expect BEH to start the bond refinancing process well ahead of maturity," Fitch said.
Source: investor.bg (15.07.2016)

The State saves about BGN 300 million from the amended contracts with the two US-owned thermo-electric power plants in Bulgaria, AES Maritsa East 1 and ContourGlobal Maritsa East 3, Energy Minister Temenouzhka Petkova said. Following the repayment of the outstanding debts of the National Electricity Company (NEK) to the two plants in April, they agreed to lower with immediate effect the capacity price that they charge NEK: by 14% for AES and 15% for ContourGlobal. Petkova was asked about the amount of the interest due on a syndicated loan of EUR 535 million that NEK had to take out to pay up to the two power plants until it issue bonds. The precise interest rate of the loan is a trade secret but its average size is 3.8%. The penalty interest is about one percent above the base interest rate, Petkova said. She said that the effect from the amended contracts exceeds BGN 96 million per year, or nearly BGN 1,000 million until the expiry of the long-term agreements with the plants.
Source: Capital (18.07.2016)

At the end of the summer is expected the second platform of our energy market to start. Through it electric energy will be traded through bilateral long-term contracts. Today or tomorrow rules and standard contracts will be published, then for two weeks comments on them will be accepted. After that meetings with potential participants will be organized, where they will get acquainted with the platform and its way of action and finally dry training will be held. Electric energy will be traded in the new platform of principle, which currently runs the trade in oil futures. The new platform will provide standard products with delivery period, week, month, quarter, and half-year. Trading will be done in two ways - through auctions and through continuous trading screen.
Source: Monitor (19.07.2016)

Moody's Upgrades Bulgarian Energy Holding's Rating Moody's Investors Service has assigned a provisional (P)Ba2 senior unsecured rating to Bulgarian Energy Holding EAD's (BEH) proposed bond issuance. It normally issues provisional ratings in advance of the final sale of securities to voice its preliminary credit opinion with regard to the transaction only, with a definitive rating possibly differing from a provisional one. BEH's (P)Ba1 corporate family rating has meanwhile been affirmed, with a stable outlook. The senior unsecured rating is positioned one notch below the corporate family rating, which reflects the structural subordination of the creditors at the holding company to those in the operating subsidiaries. Upward rating potential is limited, Moody's also says, citing "uncertainties over the settlement of the Belene arbitration award and the timing and nature of the full liberalization of the wholesale electricity market and its impact on BEH."
Source: 3e-news (21.07.2016)

Change of fuesl in the NPP Kozloduy only if it is safe In order to change the fuel in Unit 5 and 6 of Nuclear power plant Kozloduy, the plant has to ask for permission and its exploitation has to be in line with International requirement for safety, as well as for any other change. Director of the Supply Agency of the European organization Euratom Stamatios Tsalas requires our NPP to abandon the introduction of the advanced Russian nuclear fuel TBCA-12 and to provide in the tender for the provider access to tapes of Westinghouse. However, as US fuel has not been tested for compatibility with Russian reactors such as ours, NPP must make experiments with this fuel. Any amendment to the approved fuel is subject to licensing, if diversification of supply also receives a license. Kozloduy NPP has twice requested permission to operate with advanced fuel TBCA-12 - in 2015, and now in April this year
Source: Duma (22.07.2016)

Very large investor interest in new BEH bonds There is great investor interest in the new bonds to be issued by the Bulgarian Energy Holding (BEH), said Deputy Energy Minister Nikolay Nikolov. "There is undeniable investor interest. And even I would say a very big one," said Nikolov. He clarified that the so-called roadshow or presentation of papers in front of potential investors is completed. Meetings began last Monday after BEH authorized J.P. Morgan and Banca IMI to organize a series of meetings with investors in securities with fixed income in the UK and continental Europe. The bonds will be listed on the Irish Stock Exchange, where the first bond issue of BEH was placed in 2013. The aim of BEH is to provide at least EUR 500 mln, but no more than EUR 535 mln, which is the amount received as bridge loan in end of April.
Source: Monitor (26.07.2016)

Bulgarian Energy Group BEH Places EUR 550 M Bond Issue State-owned Bulgarian Energy Holding (BEH) has successfully placed a EUR 550 M issue of corporate bonds on international capital markets, Energy Minister Temenuzhka Petkova has announced. The bonds carry an annual coupon of 4.875%, Petkova wrote on Facebook on Tuesday. The energy holding will use the proceeds from the bond issue to repay a bridge loan which BEH took out earlier this year to repay debt of its subsidiary National Electricity Company (NEK) owed to the local power plants of U.S.-based AES Corporation and ContourGlobal. The EUR 550 M five-year unsecured bond issue was almost four times oversubscribed, as investors placed bids for some EUR 2.1 B worth of BEH bonds, according to capital.bg “The achieved yield is 5.125%, which experts see as a good result against the background of problems in the energy sector and volatile capital markets after Brexit and the coup attempt in Turkey,” the Bulgarian business newspaper said in its online edition. An announcement that an unnamed investor had booked 20% of the issue, which was made at the start of the subscription, gave a positive signal to other investors, the newspaper said. It added that according to two independent sources that investor had been the European Bank for Reconstruction and Development. The bonds from the second issue will be listed on the Irish stock Exchange, on which bonds from BEH’s first issue already trade. The EUR 500 M, five-year issue was placed at an yield of 4.287% in 2013.
Source: Monitor (27.07.2016)

Mines Maritsa Iztok waits for BGN 110 million BGN 110.4 million is the sum that Mines Maritsa Iztok expects to get by the four major companies in the energy complex. The biggest claims of the mines are for produced and sold lignite coals from the state TPP Maritsa Iztok 2- BGN 69.168 million as BGN 24.154 million is what private briquette factory Brickell has to pay for coal. After receiving claims from NEC, the two American thermal power plants in the energy complex - ContourGlobal MI-3 and AES MI-1 melted their obligations to the company respectively to BGN 11.46 million and BGN 5.62 million. Besides its huge debts to the mines, TPP Maritsa Iztok 2 has a debt of BGN 84 million to other group companies of BEH. Their total amount is assessed to BGN204.64 million. The ultimate loss before tax of the TPP is BGN 51 million, which is more by BGN 18.3 million compared to the same period of 2015. Due to falling prices of electricity and natural gas in the first half of the year and revenues of NPP Kozloduy dramatically decreased as well as those of Bulgargaz by BGN 31 mln and BGN 235.22 mln respectively. Bulgargaz reported profit of BGN 35.424 million for the first half of the year.
Source: Standart (02.08.2016)

Bulgaria's NPP Kozloduy net profit plummets in H1 Bulgaria's sole nuclear power plant (NPP) Kozloduy said its first-half net profit fell sharply to BGN 236,000 from BGN 69.9 million in the same period last year due to lower revenues and higher costs. The company's operating revenue dropped by an annual 7% to 396 million levs in January-June, with 98% of it stemming from electricity sales, its interim financial report, posted on the finance ministry's website, showed. At the same time, operating costs rose 13% to 394 million levs. The nuclear plant's gross electricity output edged up 0.14% to 7.89 million MWh in the review period. It sold a total of 7.48 million MWh, generating a revenue of 387 million levs, down 6.5% year-on-year. Kozloduy sold 277,189 MWh worth 15 million levs on the Independent Bulgarian Energy Exchange (IBEX), which was launched in January. Kozloduy NPP's investments in the period under review totalled 35 million levs.
Source: investor.bg (04.08.2016)

BEH repaid the loan of EUR 550 mln At the end of July this year BEH EAD successfully placed Eurobond issue worth EUR 550 mln to the Irish Stock Exchange. With the raised funds the energy holding company repaid on August 2 bridge financing in the amount of EUR 535 mln. Thus BEH paid interest for the second quarter for 11 days. This was announced by Energy Holding in connection to the information about the heavy conditions under which BEH has taken the loan to cover debts to American TPPs AES - 3C Maritza East 1 and Contour Global Maritsa Iztok 3. Interest rate agreed for bridge financing in 2016 amounted to 3% for the first three months and to 3.5% for the second three months. Interest shall be calculated until the repayment of the loan. The holding company states that the option of raising the interest rate to a level of 8.5% is not applicable automatically and unilaterally, but only upon the occurrence of certain circumstances. That possibility of practice has not been applied after the repayment of the bridge loan after on 2 August.
Source: Banker (09.08.2016)

Bulgaria Invites Russian Experts for Talks over N-Plant Bulgaria's Energy Ministry has sent a formal letter to state-owned Russian company Rosatom, inviting experts from the energy giant to the country, the ministry's press office says. Minister Temenuzhka Petkova has cited the need to set up the parameters and composition of a working froup on the Belene nuclear power plant (NPP) project. The move to form the working group was agreed by Bulgarian Prime Minister Boyko Borisov and Russian President Vladimir Putin last week. Their phone conversation came after more than a year of tensions between Bulgaria and Russia with regard to energy affairs that followed the cancellation of three major joint energy projects involving the two countries in just a few years. Prior to talks, a letter was submitted to Sofia by EU Commission President Jean-Claude Juncker that hinted at a possible revival of the Belene NPP project. Borisov, whose previous government had brought the project to a halt, said in June the current one did not rule out a restart anymore, with Bulgaria being forced to buy reactors and nuclear equipment from Atomstroyexport (Rosatom's export arm) under an arbitration ruling. The meeting of Bulgarian and Russian experts should take place between August 15 and 30, Minister Petkova has said.
Source: Sega (10.08.2016)

Greek energy regulator oks launch of Greece-Bulgaria gas link capacity management tender The Greek energy regulator has approved an invitation to companies to submit binding bids for the management and allocation of capacity on the upcoming Interconnector Greece-Bulgaria pipeline (IGB). Greek and Bulgarian regulators are working together to overcome procedural problems, Greece's Regulatory Authority for Energy said on the government’s Diavgeia website on Wednesday. In April, state-owned Bulgarian Energy Holding (BEH) said that six companies had filed non-binding bids to use the planned gas link - state-owned gas monopoly Bulgargaz, Greece's DEPA and Gastrade, Italy's Edison, Azerbajan's Socar and US-based Noble. Later in April, the company in charge of the project, ICGB, said that nine companies had submitted non-binding expressions of interest (EOI) to use the pipeline. A total aggregate capacity of 4.3 bcm per year was requested for gas transportation services in firm forward mode from Greece to Bulgaria and approximately 1 bcm per year was requested for gas transportation services in firm reverse mode from Bulgaria to Greece, ICGB said at the time. The IGB pipeline, which will be 182 km long, will link the northeastern Greek city of Komotini with Stara Zagora in Bulgaria. It is estimated to cost 220 million euro ($245.5 million). The gas link will carry 3 billion cu m of natural gas annually in its initial stage and will have a maximum capacity of 5 billion cu m per year. It will eventually be connected to the Trans Adriatic Pipeline (TAP), carrying natural gas from the Caspian Sea to Europe through Greece.
Source: Monitor (12.08.2016)

Bulgaria's Economy Grew 3% in Q2, 2016 The Gross Domestic Product (GDP) of Bulgaria increased by 3% in the first quarter compared to the same period of the previous year, flash estimates of the national statistics body show. Flash estimates are "the earliest picture of the economy according to national accounts concepts, which is produced and published as soon as possible after the end of the quarter, using a more incomplete set of information than that used for traditional quarterly accounts," as defined by the Eurostat Handbook on quarterly National Accounts. For the second quarter of 2016 (April-June), the flash estimates suggest GDP was BGN 21.753 bln. Gross value added (GVA) for that period amounted to BGN 18.538 bln. "In the structure of GDP by the expenditure approach the largest share has the final consumption (77.7%), which in nominal terms amounted to BGN 16.894 bln," NSI says. "In the second quarter of 2016 gross capital formation is BGN 4.689 bln and has a share of 21.5% in GDP. The external balance (exports minus imports) has a positive sign.
Source: Maritsa (15.08.2016)

Without the cost of NPP Belene, NEk began to shrink liabilities Hardly Bulgaria has a company to measure the obligations of the National Electricity Company (NEK), which liabilities towards the middle of 2016 reached BGN 4.470 billion. In addition to the sum being astronomical, it grew by BGN 844 mln in only 6 months, shows the financial report of the state-owned company, which was published Monday on the website of the Ministry of Finance. This is not unexpected, given that in April the account of the company in column current liabilities added another BGN 1.082 billion, which NEK was condemned by the Russian Atomstroyexport to pay for stopping the NPP Belene project. In practice, if the Belene effect is excluded, the situation in NEK improves slightly as the total liabilities of the company fell by just over BGN 200 mln, indicating that the company comes out of the debt spiral. Short-term payables to related parties also increased by BGN 621 mln to nearly BGN 1.5 bln. Most of them – BGN 1.313 bln, to the owner Bulgarian Energy Holding (BEH) at the end of 2015 were BGN 238 mln. This is due to bridge financing of EUR 535 mln, with which NEK had to pay obligations to the two American plants TPP AES Maritsa east 1 and TPP ContourGlobal Maritsa east 3.
Source: Capital (17.08.2016)

Bulgaria's IBEX power exchange to start trade through bilateral contracts by Oct 1 The Independent Bulgarian Energy Exchange (IBEX) will start trade through bilateral contracts by October 1, the energy regulator said on Thursday. The move will increase trading volumes, pushing down prices, and will allow many more producers to join trade, Ivan Ivanov said. Currently, IBEX is trading through bilateral contracts in test mode. The next stage of the power exchange's development envisages the launch of a platform for contracts for difference (CFD). IBEX was established in January 2014, as a fully-owned subsidiary of the Bulgarian Energy Holding. It was developed in partnership with Norwegian-based Nord Pool Spot and has been operating since January 19. On Thursday, a total volume 275.4 MW were traded on the exchange at a price of BGN 68.77 per MWh.
Source: investor.bg (19.08.2016)

Bulgaria’s Maritsa East Mines Seek BGN 28 Million Loan Bulgaria’s Maritsa East Mines have re-launched a call for a loan through overdraft totaling BGN 28 m (about EUR 14 m), the Bulgarian Energy Holding – parent structure of the mines, said in an announcement on its website. BGN 8 m will be needed for paying debts towards suppliers, while BGN 20 m would be put towards salaries and taxes. The deadline for applications submission expires at 15.00EET on Aug 24, 2016. (publics.bg)
Source: Other (24.08.2016)

The energy system operator with a profit of BGN 42 million for the first annual half The Electricity System Operator, which owns the entire electrical grid in the country continued to report good results. By mid-year the state-owned company earned BGN 41.8 million, which is one of the best performances in Bulgarian Energy Holding’s group of companies. Only Bulgargaz and Bulgartransgas report better profits for the first half - respectively BGN 48.9 and 43.5 million. At the same time, revenue from sales marked a marginal increase of BGN 5.2 million, reaching BGN 287.7 million. In addition the company's revenues for acquisition of tangible fixed assets also increased by BGN 3.380 million from the Fund Kozloduy. The energy price which ESO collects for access and transmission, has fallen by 13.15%. This trend began in the middle of last year, which led to a decrease in electricity prices in Europe by 15-20%.
Source: Capital (26.08.2016)

For the second year 17 Bulgarian companies are among the largest 500 in CEE For the second year 17 Bulgarian companies were included in the ranking of the largest companies in Central and Eastern Europe in 2015. The total turnover of Bulgarian companies in the ranking reached EUR 17.765 bln, which recorded a slight decline compared to last year, while net profit amounted to EUR 148 mln, according to the ranking of international credit insurer Coface - Coface CEE Top 500, which is published for the eighth consecutive year. Among the Bulgarian companies, first in the ranking is Bulgarian Energy Holding, which occupies 21st position (26th place last year) and surpassed Lukoil Neftochim, which was the leader last year. The others in the top 10 of the largest Bulgarian companies in the ranking are Aurubis Bulgaria, NEK, Lukoil Bulgaria, Kaufland Bulgaria, CEZ Electro Bulgaria, Bulgargaz, OMV Bulgaria and Advance Properties. Among the 17 companies, however, there are 3 new - Express Logistic And Distribution (360th place), Daphna Group (392nd) and Litex (462nd) and dropouts are Metro Cash & Carry Bulgaria, Mobiltel and Petrol.
Source: investor.bg (01.09.2016)

"South Stream's Golden Pawns", reads a "Capital Weekly" headline of an article about how the State's representatives in the project were strongly motivated financially to support it at any cost. The managers in the Bulgarian Energy Holding were getting significantly higher salaries in the Bulgarian-Russian company "South Stream - Bulgaria". This creates a potential conflict of interest, in which they are more interested in defending the interests of the mixed company, rather than those of their employer. As a result of this the project was not suspended, despite it becing clear by mid-2014 that the project is not only unprofitable, but would also lead to sanctions by Brussels. The main winners from this conduct were first Gazprom, and then the companies selected to construct the pipeline, most of them connected to Movement for Rights and Freedoms MP Delyan Peevski.
Source: Capital (07.09.2016)

Interest on loans falling to 3.5% The interest rates on certain retail products may drop to 3.5% by 2017. Retail lending has the largest share in the external financing of households in the country. In recent years improvements in credit conditions after the global financial crisis of 2008-2009 have been recorded. After the drastic jump in interest rates during the economic crisis - 13.5% in 2009 to 9.76% in 2007, a trend for a gradual decrease has been established. To the first half of 2016 interest rates on consumer and mortgage loans reached levels lower than those before the crisis - 4.1% in 2016 to 6.8% in 2007 for mortgage loans and 6.6% in 2016, at 9.5% in 2007 for consumer ones. Expectations for next year are around 3.5% interest on some of the proposed retail credit products.
Source: Other (08.09.2016)

Bulgargaz wants increase of natural gas by just over 3% in October Bulgargaz wants higher price of natural gas for the fourth quarter. In a statement the company said that in accordance with the requirements and conditions of Ordinance ¹ 2/2013 on the regulation of gas prices, Bulgargaz EAD, a subsidiary of Bulgarian Energy Holding AD offers KEVR to establish price for natural gas for the fourth quarter of 2016 to the amount of to BGN 290.28 /hm3 without excise duty and VAT, which is an increase compared to the third quarter of BGN 9.20 /hm3 or 3.27%. KEVR is yet to take its decision. Two days ago the chairman of the commission Ivan Ivanov commented that even if there is a suggestion for a slight appreciation of natural gas from October 1 this year, is not expected to change in the prices of heating and hot water. KEVR has the right not to announce a decision on new prices for thermal and highly efficient electric energy, as by law it is obligatory only in case of significant change in the pricing element, in this case natural gas, which is not the case.
Source: econ.bg (12.09.2016)

Bulgartransgaz seeks advisor on Balkan gas hub project Bulgarian gas transmission system operator Bulgartransgaz is seeking an advisor for the planned Balkan hub gas project in a BGN 119,000 tender, according to a notice posted on the website of the government's procurement agency. The consultant will be required to assess the capabilities of state-owned Bulgartransgaz for participation in the construction of the gas hub and adjacent infrastructure on the territory of Bulgaria, the tender notice reads. The advisor should also evaluate the opportunities for supply, consumption and investments. The deadline for submitting offers is November 4. Last week, Bulgarian media quoted a senior European Commission official saying that the country should submit a proposal for feasibility studies for the Balkan gas hub to the Commission by November 9 in order to secure funding for the project.
Source: Sega (16.09.2016)

Most tourists recommend Varna as an attractive destination Over 85% of tourists visiting Varna this summer are positive that they recommend to their friends and relatives to visit the seaside capital as an attractive destination for leisure, spa, historical and cultural tourism. This was announced by the municipal directorate "Tourism". The project is implemented jointly in partnership with 4 other municipalities - Aksakovo, Devnya and Beloslav Avren. The goal is through common tourist routes to attract more tourists. As a result of the marketing activities of the tourism product awareness of tourists, tour operators and travel agencies increased by 100%. Advertising catalogs and brochures made during the project were offered throughout 2015 and 2016 to more than 20 000 tourists visiting Bulgaria from 55 nationalities. Community partners reported 10% growth in attendance sights on their territory.
Source: Monitor (16.09.2016)

The project company developing the Gas Interconnector Greece-Bulgaria (IGB), equally controlled by IGI Poseidon SA of Greece and Bulgarian Energy Holding EAD of Bulgaria, announced it will be part and an operator of the Vertical Gas Corridor. The ICGB project company has signed a joint declaration for this with the natural gas grid operators of Bulgaria, Greece, Romania and Hungary during a high-level meeting in Budapest on September 8 – 9. “This is a serious acknowledgement of the key role of the interconnector between Bulgaria and Greece (IGB) for the energy security and source diversification for Europe and the region”, a press release from ICGB said. Prior to signing the joint declaration, the energy ministers of Bulgaria, Greece, Romania and Hungary signed a declaration in support of the Vertical Gas Corridor.
Source: Monitor (17.09.2016)

United Bulgarian Bank and SG Expressbank granted BGN 28 million working credit to "Mini Maritsa Iztok" Mini Maritsa Iztok managed to find banks to grant it credit amounting to BGN 28 million. For the working capital credit the mining company ranked first the two banks - UBB and Societe Generale Expressbank, which will provide a total of BGN 28 million of overdraft credit. The major loan of BGN 20 million will be granted by Societe Generale Expressbank and will cover obligations to employees, taxes and insurance. The remaining BGN 8 million, which will be provided by UBB, are current payments and obligations to suppliers. The contracts with both banks are still not signed. Under the terms of the announced contest the repayment period is 12 months. The procedure for an investment loan of BGN 24.3 million is still pending for the approval of the Bulgarian Energy Holding.
Source: Capital (20.09.2016)

Bulgarian Cabinet approves draft bill to pay Belene arbitration damages Bulgaria’s state-owned electric utility NEK will receive a cash injection from the state Budget to pay the damages awarded by an international arbitration tribunal in a dispute with Russia’s Atomstroyexport, under a draft bill approved by the Bulgarian government on September 20. Atomstroyexport, a division of Russia’s nuclear corporation Rosatom, was picked to build two 1000MW nuclear reactors at Belene on the Danube River, a project that was shut down by Bulgaria in 2012. The Russian contractor filed for arbitration, asking for 1.2 billion euro in damages for equipment ordered for the nuclear power plant, which NEK never paid for, and won the court action in June. Speaking after the Cabinet meeting on September 20, Energy Minister Temenouzhka Petkova said that NEK currently owed about 629 million euro, but the amount would grow past 646 million euro by the end of the year, after applying the daily penalties. “If NEK does not pay the amount ordered by the international arbitration tribunal, this will have negative consequences not only for NEK itself, but the country’s entire energy system,” Petkova said, as quoted by Bulgarian National Radio. Should NEK fail to pay Atomstroyexport, the Russian company could ask that the Bulgarian utility is declared insolvent, which in turn would be reflected in the bottom line of its parent company, the Bulgarian Energy Holding (BEH), risking a breach of covenant for BEH’s two outstanding bond issues, she said. Finance Minister Vladislav Goranov was optimistic that the Cabinet would be able to recoup by the Budget expenditure by selling the nuclear equipment. In July, Bulgarian officials discussed the prospect of selling the reactors to Iran during a visit to Tehran. The bill approved by the Cabinet envisions that the money would be released from the fiscal reserve, which currently stands at 14 billion leva, or about 7.16 billion euro. Before the money can be released, Bulgaria would require the approval of the European Commission, the Cabinet said in a media statement.
Source: Capital (21.09.2016)

Four new companies file binding offers to use Bulgaria-Greece gas link Four companies, which did not participate in the non-binding expression of interest (EOI), have submitted binding offers to book capacity in the gas interconnector Greece-Bulgaria (IGB), the energy ministry in Sofia said on Wednesday. Bulgarian energy minister Temenuzhka Petkova expressed confidence that the volumes of natural gas booked in the second stage of the market test will replicate those filed in the non-binding expression of interest, the ministry said in a statement. The ministry did not disclose the names of the four new companies. During the first bidding round, which closed on April 8, ICGB received non-binding offers from nine companies, including Bulgargaz, Edison, Greece's DEPA and Gastrade, Azerbajan's Socar and US-based Noble. The nine interested companies requested a total aggregate capacity of 4.3 bcm per year for gas transportation services in firm forward mode from Greece to Bulgaria and approximately 1 bcm per year for gas transportation services in firm reverse mode from Bulgaria to Greece. The deadline for cubmitting binding offers in the second phase of the market test is October 31. The 182 km long IGB pipeline will link the northeastern Greek city of Komotini with Stara Zagora in central Bulgaria. It is estimated to cost 220 million euro ($245.5 million). The pipeline will carry 3 billion cu m of natural gas annually in its initial stage and will have a maximum capacity of 5 billion cu m per year. It will eventually be connected to the Trans Adriatic Pipeline (TAP), which will carry Azeri gas to Europe through Greece. Bulgaria and Greece signed a final investment decision on the construction of the gas link in December last year.
Source: Monitor (06.10.2016)

Bulgaria could take up to 25 pct stake in Greek LNG project Bulgaria could take up to a 25 percent stake in a project to build a liquefied natural gas (LNG) terminal off the coast of northern Greece, the Bulgarian energy minister said. The EUR 380 million floating facility will be linked to a gas pipeline due to be built by Greece and Bulgaria and would help Bulgaria reduce its reliance on Russian gas. It will also aim to supply gas to southeastern Europe. Bulgaria’s state-run energy holding company BEH has set up a taskforce with Greek natural gas company Gastrade, which plans to build the terminal, to consider joint participation. The team is due to come up with a proposal by the end of this month and Energy Minister Temenuzhka Petkova said Sofia would then consider its options. Gastrade, part of Greek energy group Copelouzos, plans to build the terminal off the coast near the northern Greek city of Alexandroupolis. “The end of October is the deadline, when the taskforce should come up with a proposal which should give us clarity about the possibilities for Bulgaria’s participation,” Petkova said at a press briefing with her Greek counterpart Panos Skourletis. “We have declared readiness to participate as an investor, as a shareholder with up to a 25 percent stake,” she said. The facility, with an estimated annual capacity of 6.1 billion cubic metres (bcm), will aim to supply gas to southeastern Europe via another natural gas pipeline scheme that will cross through Greece, the Interconnector Greece-Bulgaria (IGB). Bulgaria and Greece signed the final investment agreement for the IGB link last year and binding bids for the pipeline are expected by the end of this month. Gastrade would not necessarily hold a majority stake in the project, but would like to involve the main market players in Greece and Bulgaria, Konstantinos Sifnaios, a business development manager at Gasgrade, said. Cheniere Energy, a U.S-based liquefied natural gas (LNG) exporter, has also expressed interest in becoming a shareholder, Sifnaios said. A final decision on the investment structure of the Alexandroupolis terminal is expected by the middle of 2017, with it due to become operational in the second half of 2019, he said. /publics.bg
Source: Other (07.10.2016)

Two Indicted in Bulgaria over Nuclear Plant Deal with Russia The Sofia City Prosecution Office has charged two executive directors of the National Electric Company (NEK), Lyubomir Velkov and Mardik Papazian, with concluding an unprofitable transaction resulting in a detriment exceeding EUR 77 million, the prosecution service said. According to the prosecution case, on November 28, 2007, in their capacity as NEK CEOs, Velkov and Papazian knowingly concluded a framework agreement on the supply of equipment from the amount located at the Belene N-Plant to the value of EUR 205 million with the President of AtomStroyExport JSC, Moscow, thereby inflicting detriment of EUR 77.17 million on NEK.
Source: Capital (18.10.2016)

The Bulgarian Energy Holding group, which pools all state-owned energy assets made the annual payment of EUR 21.25 million interest on its 2013 bonds. This was the third interest payment. The Eurobond issue of EUR 500 million will mature in 2018, BEH issued the bond in 2013 to cover its liabilities relating to the scrapped project for the construction of Belene nuclear power plant. On July 26, 2016 BEH successfully placed a second Eurobond issue worth EUR 550 million on the Irish Stock Exchange.
Source: expert.bg (08.11.2016)

Bulgarian Business Fears New Natural Gas Crisis In an open letter to the media, Bulgarian Federation of Industrial Energy Consumers (BFIEC) expresses concerns about the lack of orders to Bulgargaz for natural gas supplies in 2017 on the part of Overgas Networks. The industrialists point out that this scenario resembles the situation at the end of 2015, when the supplier of "Overgas Networks" - "Gazprom Export", stopped processing the orders of the company. So as to fulfill their contracts, on December 31, 2015 the company was forced to place an order for its entire consumption for 2016 to the public supplier Bulgargaz. BFIEC believes that if orders for additional quantities of natural gas are placed, Bulgargaz will not be able to offer flexible contracts to its clients, or accept bigger orders from other clients without financial penalties. BFIEC concerns stem from the fact that Bulgargaz has already participated in tenders for the allocation of natural capacities in the territory of Romania.
Source: Standart (09.11.2016)

Balkan gas hub to be connected to the East Ring Bulgartransgas and Eustream agreed to work to improve security of gas supplies in Central and Southeastern Europe and the realization of infrastructure projects - gas hub Balkan and the pipeline East Ring' in a memorandum signed in the presence of Minister of Energy Violet Petkova. The Memorandum of Understanding between the Bulgarian and Slovak gas transmission operators Bulgartransgas and Eustream will develop a concept for the development of a gas distribution hub in Bulgaria in accordance to the idea of a Balkan gas hub. The two sides will analyze in detail and will consider technical options for the coordinated implementation of the two projects. The agreement confirms the connection between the projects. The pipeline East Ring will serve as a priority route for western interconnection of regional markets and gas hub Balkan. In order to ensure security of supply of natural gas in Central and Southeastern Europe, the Memorandum provides support for the inclusion of other stakeholders in the development of both projects.
Source: Standart (09.11.2016)

Bulgaria – Romania Interconnector Starts Operation on November 11 Gas transmission operators Bulgartransgaz and Transgaz S.A. have completed the construction of the gas interconnector between Bulgaria and Romania, the Bulgarian energy ministry said in a statement. The interconnector has a total length of the interconnector is 25 km, with 15.4 km on Bulgarian territory, 7.5 km on Romanian territory, and 2.1 km underwater traverse of the Danube River. The underwater section of the interconnector which includes a main and a back-up pipeline, was constructed by Austrian company Habau. The inauguration ceremony will be held on November 11 in Marten, Bulgaria in the attendance of Bulgarian PM Boiko Borisov, VP for European funds and economic policies Tomislav Donchev, representatives of the Romanian government, the European Commission and others officials, the Bulgarian energy ministry said.
Source: National radio (11.11.2016)

TPP Maritsa East has been granted a consecutive loan by BEH of BGN 45 million State-owned TPP Maritsa East 2 has received another loan from Bulgarian Energy Holding in the amount of BGN 45 million. In May, the company received another cash injection after BEH decided to increase its capital by BGN 49.550 million. Despite this strong support, the financial condition of the plant continued to deteriorate, as to the first nine months of 2016 its loss was BGN 78.2 million. The purpose of the new loan is to cover the NEC’s long-term costs for the purchase of energy under contracts and preferential prices. From the company’s statement for the first nine months it became clear that arrears amount to BGN 82.7 million. The funds from the loan will actually restore BGN 35 million to the fund, which were due by the end of September and nearly BGN 10 million of arrears to TPP Maritsa East. The new inter-company loan has a maturity date up to 2020, grace period from the date of implementation by the end of November 2017. The company is expecting to turn to profit by 2020, which by the end of the period will reach BGN 10.3 million.
Source: Capital (01.12.2016)

Five offers were received on a long term basis for the binding phase of the market test for the gas interconnector Greece-Bulgaria, ICGB stated. According to the procedure, the market test will be completed with the implementation of the advanced reservation capacity agreements by the companies which submitted the offers, upon approval of the relevant allocation by the national regulators of Greece and Bulgaria. Last month, ICGB extended the deadline for submitting binding offers in the second stage of the market test to November 30 following requests by participants in the first phase. During the first bidding round, when interested companies had to express interest by April 8, ICGB received nine non-binding offers. The 182 km long IGB pipeline will connect the northeastern Greek city of Komotini with Stara Zagora, in southern Bulgaria. The link is estimated to cost EUR 220 million. The pipeline will eventually be connected to the Trans Adriatic Pipeline, which will carry Azeri gas to Europe through Greece. The Interconnector Greece-Bulgaria project is being implemented by the joint venture company ICGB, registered in Bulgaria in 2011, with state-owned Bulgarian Energy Holding and Greece-registered IGI Poseidon holding equal shares.
Source: Capital (05.12.2016)

Bulgarian Energy Holding will turn a profit for a second consecutive year The Bulgarian Energy Holding will turn a profit for a second consecutive year after a loss in 2014 which amounted to BGN 274 million. This means that the financial collapse has been overcome, said Energy Minister in resignation. According to Petkova BEH’s profit for 2016 will be BGN 7 million, whereas last year it was BGN 29 million. The reason for the lower profit are payments for NPP Belene. At the end of September at individual level BEH profits rose over 16% to BGN 137.8 million because of more dividends. ?
Source: Capital (07.12.2016)

BEH will finance state-owned TPP Maritsa East 2 with BGN 45 million State-owned TPP Maritsa East 2 has paid just over BGN 33 million in fund "Security", which was created to help financially another state company - National Electric Company. By year-end the contributions by the company will exceed BGN 44 million. A loan has been also requested from the Bulgarian Energy Holding of BGN 45 million, because of the financial situation of the plant and because of low electricity prices. In 2015 TPP Maritsa East 2 recorded a loss of about BGN 72 million, while a year earlier it was minus BGN 35 million. Forecasts for 2016 and 2017 are not optimistic, predicting further losses at the plant.
Source: Sega (13.12.2016)

By the end of October 2016 the Security Fund of the electricity system raised BGN 264.1 million. Expenses amounted to BGN 198.5 million. The fund was established with legislative changes in July 2015. Producers and traders of electricity, including Bulgartransgas and Electricity System Operator, import 5% of their operating revenue. The fund includes revenues from trading of carbon emissions. The collected funds are used to cover the costs made by the National Electricity Company in its capacity of a public supplier. At the beginning of the month TPP Maritsa Iztok 2 reported that for the first nine months of the year it has payed BGN 33 million to the Fund. Expectations are that by the end of the year the contribution will rise to BGN 44 million. The plant asked for a loan from the Bulgarian Energy Holding to pay its obligations, including to the Fund for the security of the power system.
Source: Duma (21.12.2016)