U.S. company AES, hired to build a 670MW lignite-fired replacement capacity on the site of the Maritsa Iztok 1 thermal power plant (TPP), said on Tuesday, January 11, that it has enlisted support for the project from Dutch ING Bank and its French peers BNP Paribas and Caylon. According to an AES press release, the banks have wed their support to the approval by the Bulgarian government of a new letter of support for the project. The Bulgarian energy ministry tried on two occasions to secure a new letter of support last year but was thwarted each time by the ministries of economy and finance. The opponents of the letter are apprehensive of the licence given to the investor to choose the state that will have jurisdiction over the deal and to determine the conditions for the privatisation of the Maritsa Iztok mining complex. The cost of the replacement capacity is seen at some 1.2 bln euro making it one of the biggest investment projects in Bulgaria's energy sector. The implementation of the project has stalled over financial problems within the AES corporation and lack of interest from investors. However, after meeting with prime minister Simeon Saxe-Coburg and energy minister Milko Kovachev in October, AES CEO Paul Hanrahan said the company was ready to proceed with the project on its own and launch construction in 2005. And there is also the issue of AES's electricity production licence which expired in July 2004. There is still no information whether the State Energy Regulator Commission has taken steps to renew the licence. Italian gas and water utility Enel, involved in the rehabilitation of the Maritsa Iztok 3 TPP, and Japan's Mitsui, which is upgrading the smaller units of the Maritsa Iztok 2 TPP, are also interested in the construction of a new power capacity. The two companies are ready to build the new facility on the site of TPP Maritsa Iztok 3 since AES is insisting on going solo.
Source: Dnevnik (12.01.2005)

The construction of a replacement lignite-fired capacity on the site of the Maritsa Iztok 1 thermal power plant (TPP) and the completion of the Belene nuclear power plant (NPP) will be the two biggest investment projects in Bulgaria's power industry until 2006, says an investment overview prepared by the energy ministry. The cost estimates for the two projects bandied around by government officials have increased steadily during the past couple of months. The initial price tag for the Belene NPP was 1-2 bln levs but on Thursday the figure cited in the overview had somehow soared to over 4 bln levs. The government is likely to select at its next meeting the nuclear technology that will be supplied to the Belene site and to give the go-ahead to the project in principle. The facility should be operational by 2011. The construction of the replacement facility on the Maritsa Iztok 1 site will cost 1.9 bln levs, says the government overview. The facility is due for delivery by 2008. The document also predicts that the future buyers of the TPPs in Varna, Rousse and Bobov Dol will chin in 1.3 bln levs for eco improvements. Other ongoing big-ticket projects in the power industry include the construction of the Tsankov Kamak hydro complex, the rehabilitation of TPP Maritsa Iztok 3 and the small units of TPP Maritsa Iztok 2, the installation of desulphurisation devices in Maritsa Iztok, the modernisation of the district heating utilised in Sofia and Pernik and the upgrade of the national electricity transmission grid. The cost of the projects in progress adds up to 3.7 bln levs. Bulgaria's power industry absorbed investment for 960 mln levs last year with 43% of the resource provided by the energy companies themselves. Five power projects have been granted state guarantees, the document says but does not specify if the Belene NPP will enjoy similar treatment.
Source: Dnevnik (04.02.2005)

The enterprise for management of the environment protection activities granted BGN 13.157 million interest-free loans to businesses in 2004. A total of BGN 1.5 million will be allocated to construction of small hydroelectric power plant Davidkovo II. The company Flash will use its GN 1.29 million state interest-free loan for construction of another small hydroelectric plant. Techart Commerce was supported by BGN 700,000 to build its plant for production of briquettes from straw.
Source: Pari (21.02.2005)

Italy's Enel and the ACEGAS-APS consortium established by the Italian Dondi and Austria's EVN are litigating the election of investor for gas distribution in the Trakia region in the Supreme Administrative Court, the State Commission for Energy and Water Regulation (SCEWR) said. The regulator declared Rimini Gas winner of the competition two weeks ago. The company will get a 35-year license for gas distribution. The ground of the three companies' litigation is that the regulatory commission did not make its decision unanimously as the regulator act provides for. According to the act the commission consists of 13 members but the decision was made by the SCEWR, which has 7 members, and one of them voted against Rimini Gas.
Source: Dnevnik (18.03.2005)

At least BGN 10 billion are slated to be invested in Maritsa Iztok energy complex in the decade to come, Energy Minister Miroslav Sevlievski said in Radnevo town. In months time, the financing under the Maritsa Iztok 1 thermoelectric Power Station project is expected to be completed for the construction of two new facilities worth some one billion euros. The delay in Maritsa Iztok 3 thermoelectric power station is gradually made up for. Today, a cluster The Energy Hub of Bulgaria was officially established in the miner's town. Some 20 founders with pits, municipalities, private-owned firms and educational establishments among others, inked the document. This group will set up a new model in the energy sector in the region, Minister Sevlievski commented. In his opinion, as early as this Cabinet's end of term of office, Maritsa Iztok, the largest coal-mining company here, will be granted as concession. It means neither end of the privatization process, nor an "under-the-table" deal, Ministers Sevlievski underscored. He was emphatic that the new owners of the electricity transmission companies would not generate new fixed revenues for themselves. At a meeting with the public in Stara Zagora town he proclaimed himself against the introduction of electrometre charges, proposed by the Austrian EVN, which bought the electricity transmission companies, based in Stara Zagora and Plovdiv.
Source: Standart (22.03.2005)

Somovit and Lesport have been presented in the Transport Ministry by the end term which was yesterday. Among the candidates for the first port terminal is Kosmos Shipping – Varna.
Source: Standart (23.03.2005)

A total of 20 Bulgarian companies have stated their interest in taking part in the competitions for the concession of the ports Somovit and Lesport (10 for each port), ministry of transport and communications announced. The deadline for submission of application for the competition expired Monday. Among the candidates are TPP Maritza 3, owned by Mr. Hristo Kovachki, Varna-based Intercom Group, Transimpex, Polimer, Portflot Bourgas, owned by a relative of Mr. Hristo Kovachki, and Gastrade.
Source: Dnevnik (24.03.2005)

DSD Steel Group GmbH is expected to submit by April 15 an offer to supply a gas turbine for cogeneration to district heating company Toplofikacia Plovdiv-South, said Mirko Ugrinov, executive director of the Bulgarian company. The project may be worth between 17 mln and 30 mln euro and the investor is expected to propose an option for a heating production priced at around 24 levs/mWh. If the DSD offer is rejected, Toplofikacia will ask the energy ministry to either restructure the company or sell it off.
Source: Dnevnik (24.03.2005)

The first rehabilitated unit of lignite-fired thermal power plant (TPP) Maritsa Iztok 3, in Southern Bulgaria, will go into operation with a six-month delay, said Vasil Anastasov, executive director of national electricity grid operator NETC. Italy's gas and water utility Enel and Entergy of the U.S. co-own Energy Company Maritsa Iztok 3, the contractor in charge of the rehabilitation project. Ownership of the company is split between the Maritsa Iztok Power Holdings with 73% and the NETC. Enel holds 60% of Maritsa Iztok 3 Power Holdings, the remainder is controlled by U.S.-registered Entergy. The rehabilitation of the Maritsa Iztok 3 units is experiencing some setbacks, Energiyna Kompaniya Maritsa Iztok 3 deputy executive director Tom Ray told energy minister Miroslav Sevlievski when the official was given a tour of the power facility last week. The company executive said the delay, caused by the lack prior expertise in the modernisation of Russian turbines, can be made up. The investor intends to complete the rehabilitation of unit 1 in the first half of 2004 and to wrap up the modernisation of the TPP in 2006, expanding the plant's capacity to 904MW and bringing its annual output to 5 bln kWh. Energy Company Maritsa Iztok 3 has already asked the energy ministry for deadline extensions. The request will be review by experts from the ministry.
Source: Dnevnik (29.03.2005)

Kaolin JSC was re-certified under introduction of the system for quality management ISO 9001:2000. The first certificate was received in 2001, company’s CEO Mr. Alexander Prokopiev announced. All the fields used by Kaolin have been concessed for a term of 25 to 35 years. In 2004 Kaolin has paid some BGN 3.5 mln of concession charges, which are paid on the basis of production realized. The company is the major supplier of calcium carbonate to Thermo-electric power plant Maritsa –east 3 through a big limestone quarry in the region of Dimitrovgrad.
Source: Briag (05.04.2005)

The lobby of the ruling Simeon II National Movement in Varna has joined the competition for the management of ports in Bulgaria. This emerged after companies close to MPs Stefan Minkov, Borislav Ralchev and Nasko Rafaylov submitted offers for the concession on Lesport in Varna. The deadline for filing bids was April 21, the offers were unsealed by the tender commission on April 22. Seven of the ten candidates for the terminal in Varna are Bulgarian companies. These include TI Metals SPLTD, Interport Bulgaria JSC, Portflot of Bourgas SPLTD, Transimpex JSC, Maritsa 3 thermal power plant, Gaztrade JSC and BM Port JSC. The other three bidders are Intercom Group Ltd., Inmat Ltd. and Polimeri JSC. The lobby of the Varna MPs will take part in the bidding through Interport Bulgaria JSC, insiders say. MP Stefan Minkov has headed Lesport and has had business contacts with Interport partners. The owners of BM Port JSC, who are connected with Ralchev and Minkov, also bid for the Varna and Bourgas airport concession through Germany's Fraport, which was ranked second. The lobby-supported Tsakos Bulgaria was also candidate for 75% of the shipyard in Varna but was rejected
Source: Pari (25.04.2005)

Mines Maritsa Iztok, the concrete making plant Vulkan and the company Ilchevi were given Golden Rose for the greatest amount of taxes paid in Plovdiv. The companies participated in the competition Taxpayer of the Year. The director regional tax directorate Mr. Petko Angelov granted the awards. The nominated companies were 18, as Asarel-Medet, Vinprom – Peshtera, TPP Maritsa 3, Kurdjali-BT, and Smolian BT were among them.
Source: Sega (28.04.2005)

Enemona has registered an almost twofold increase in profits for the past two years. The company ended the year 2004 at a profit of over BGN 700 000 and implemented building, repair and engineering projects worth a total of over BGN 30 mln. Its earnings have grown 15 per cent from 2003, and nearly 100 per cent from 2002. The Kozloduy-registered company is one of the key players on the local building market and is specialized in reconstruction and modernization in the field of power engineering, as well as industrial and civil construction.
Source: Monitor (29.04.2005)

Court will hear Bulgaria’s first procedure for port's concession. TPP Maritsa 3’s owner Mr. Hristo Kovachki is expected today to appeal the election of the Varna-based company BM Port JSC for Lesport’s concessioner. The Council of Ministers decision about Lesport was published in the Friday issue of the State Gazette saying that BM Port of the Varna businessman Mr. Georgi Bonin should concess the terminal for 30 years, and should invest at least BGN 129 mln in the terminal.
Source: Sega (30.05.2005)

Stomana Industry, the Pernik-based steel mill, chemical plant Polomeri AD and EFT Bulgaria, recently licensed to operate as electricity trader on the Bulgarian power market, have been given the go-ahead to buy electricity directly from power producers, said Miroslav Dyankov from national power grid operator NETC. The three companies have signed contracts with NETC and have been duly registered by the operator. EFT Bulgaria will resell electricity supplies to eligible local consumers and broker power exports abroad. After NETC's monopoly expires, EFT Bulgaria will be able to pursue direct export transactions. Copper mining and processing company Assarel-Medet, non-ferrous smelter KCM, the Maritsa Iztok mining complex, fertiliser plants Agropolychim and Neochim, oil refinery LUKoil Neftochim, cement mill Devnya Ciment and copper smelters Umicore Med and Elatsite Med are currently the consumers eligible to engage on the deregulated segment of the local power market. They all have annual energy intake exceeding 100gWh - a bar that will be lowered to 20gWh from July, and pay a transmission charge to NETC for the electricity they buy directly from the producers. The rate of liberalisation of Bulgaria's power market is lagging earlier estimates. Only 11% have so far been opened to competition, missing the target of 18.5%, said Konstantin Shushulov, chairman of the State Energy and Water Regulatory Commission. The regulator designates to each power producer an annual quota of electricity that can be sold on the deregulated segment. The producer is free to negotiate the price of delivery directly with the buyer. Nuclear power plant Kozloduy and thermal power plant (TOO) Maritsa 3-Dimitrovgrad have requested that their annual quotas are raised while the TPPs in Bobov Dol and Rousse have been struggling to sell theirs.
Source: Dnevnik (10.06.2005)

Thermal Electric Power Plant Maritsa 3 JSC - Dimitrovgrad, Bourse code MR3, the General Meeting of which was held on June 24 2005, shall not distribute dividends for 2004. Thermal Electric Power Plant Maritsa 3 JSC - Dimitrovgrad reported a profit to the amount of BGN 781,000.
Source: Capital market (30.06.2005)

The investment project of Electricity Distribution Company- Haskovo is mainly oriented towards rehabilitation and replacement of equipment in the substation in Dimitrovgrad, Uzundjovo, Haskovo 1 and 2, Gledka, Aedino. This was reported by engineer Tosho Todorov, director of National Electricity Distribution Company SPJSC, Haskovo electricity region The project is worth BGN 1mln. The most significant investment of the company for the year of 2005 is the start of construction works of a command center hall in Thermal Electric Power Plant Maritsa 3 - Dimitrovgrad. The site will be completed in a year and the investment is worth BGN 2 mln.
Source: Pari (06.07.2005)

A new system for early notification in case of excessive gas emissions of SO2, is being developed at Maritsa-East. The system will start operating not later than October, said Mrs Penka Natcheva , director of the Regional Inspection for the Environment and the Water- Stara Zagora. The system is part of the requirements needed to be fulfilled for issuing a permit to the complex. There will be no fine imposed on the thermo-electric power plants for the recent excessive gas emissions, as no irregularities were established. The municipality council, has requested a more strict control on Maritsa-East and guarantees that there are no dangerous experiments performed on the Zmeevo firing ground.
Source: Pari (12.07.2005)

Bulgaria's Maritsa-East thermal power plant (TPP) complex would not reduce its capacity, Outgoing Energy Minister Miroslav Sevlievski said Tuesday. There is a readiness for such a step only if the Regional Environmental Inspectorate of Stara Zagora submits a thorough analyis of all data about the origin of sulphur dioxide polution. Sulphur dioxide levels in Stara Zagora were within the permisible range Tuesday morning.
Source: Pari (13.07.2005)

The harmful gas emissions in Stara Zagora will be discussed today on a special meeting of the city’s municipality council. Local deputies are also invited to take part. In the parliament, minister Dolores Arsenova said that the main source of the harmful gases are the thermo-electric power plants from the Maritza-Iztok complex. However, those claims were denied by both power plants.
Source: Pari (18.07.2005)

Haskovo District Court registered the following changes for Thermal Electric Power Plant Maritsa 3 JSC - Dimitrovgrad: Effaces Mr. Petar Ivanov Petrov as company’s manager and representative
Source: State Gazette (26.07.2005)

The first desulphurisation installation in local thermal power plant Maritza Iztok 3 is to start operating on 30 September, the plant announced. The chief executor of the project is Germany’s RWE Reinbrun. All subcontractors are Bulgarian companies. TPP Maritza Iztok 3 is owned by Italy’s Enel, US-registered Entergy and Bulgaria's National Electricity Transmission Company (NEC). Last year it produced 3.5 bln kWh electricity.
Source: Standart (28.07.2005)

Local electricity distribution companies demanded on an average electricity price rise of 4 per cent. The report of the State Commission for Energy and Water Regulation, which will be discussed by the Commission on Thursday, reveals. All the major manufacturers demand on National Electric Company (NEK) paying them from 1 to 6-7 per cent dearer electricity as of this winter. This will certainly reflect the final price. Currently the Commission is inclined to satisfy only few of the demands, the report shows.
Source: Sega (07.09.2005)

"Entergy wants to quit its participation in the Maritsa Iztok 3 modernization project," the CEO of Maritsa Iztok 3 (Maritsa-East 3) exploitation company Mike Foster said yesterday. In his opinion this is part of the current policy of the American company which is withdrawing from many European countries like Italy, Spain and England. Another reason was that hurricane Catrina left many of Entergy's power plants under water. "We can't make up for the 15-month delay in the rehabilitation of unit 2," ENEL's representative Enrico Viale said. According to him the realization of the project as a whole will be delayed by at least two years past the envisaged 4-year term. Viale added that the delay is due to the lack of experience in this sphere of the main executor of the modernization, the German consortium DCD RWE. He didn't exclude the possibility, if the executors don't improve the quality of their work, for them to be replaced, despite the fact that the clauses of the contract don't envisage it.
Source: Standart (16.09.2005)

The new management of the biggest local coal producing plant Mines Maritsa Iztok - Radnevo, is preparing for the 3 difficult years ahead, the company’s CEO, Mr. Ivan Markov, admitted. Due to expected over 15-month delay in the rehabilitation and modernization of TPP Mines Maritsa Iztok 3, as well as the expected delay of the repairworks in TPP Maritza Iztok 2, this year the miners will lag with about 2 mln t of production output, which will result in losses worth BGN 30 mln. Currently, an anti-crisis program is being implemented, which is aimed at making up for at least BGN 600 000 by end-December.
Source: Pari (19.10.2005)

Haskovo District Court registered the following changes for Thermal Electric Power Plant Maritsa 3 JSC - Dimitrovgrad: Effaces the dismissed member of the Board of Directors Mr. Ivailo Asparuhov Ivanov; Registers the new member of the Board of Directors: Ms. Denka Ivanova Topalova.
Source: State Gazette (25.10.2005)

The managing team of the Belene project at the National Electricity Transmission Company (NEK) has a new manager, the company announced. At the end of last week, NEK CEO, Mr. Lyubomir Velkov appointed Mr. Vladimir Hristov, former deputy chairman of the company’s board of directors. He replaced Mr. Krassimir Nikolov.
Source: Dnevnik (21.11.2005)

In 2006, measures have to be taken to force the electricity producers to enter the open power market, the chairman of State Commission for Energy and Water Regulations (SCEWR), Mr. Konstantin Shoushulov announced during a forum. The European directives require domestic power market to become completely open, i.e. every consumer to be able to choose freely power supplier. Under the draft, 18 per cent of the domestic market had to be liberalized in 2005, but up to now barely 8 per cent have been achieved. He explained the delay with long-term contracts under which NEK is obliged to buy out electricity on TPP Maritza Izotok III and I’s binding prices, up to 2013.
Source: Sega (25.11.2005)

Bulgarian power plants will be able to sell on deregulated foreign markets the amounts of electricity they have produced in excess of the quota limits determined by the State Energy and Water Regulatory Commission (SEWRC) if parliament passes a series of amendments to the Energy Act. The amendments, which the energy ministry is drafting, are due to be ready by early 2006. The new law will make it possible for the power stations to export electricity as of 2007 when Bulgaria's electricity market is expected to be liberalised. Also that year, the monopoly of the National Electricity Transmission Company (NETC) expires, giving major industrial power guzzlers and household consumers a choice between different energy suppliers. Before conducting a deal, however, the power plants will have to make sure the NETC does not need the electricity they are about to sell. The energy regulator determines on an annual basis a quota of the amounts which the plants can sell directly to eligible industrial consumers. So far, NETC has registered 13 eligible consumers and two energy traders. The list of power producers authorised to trade on the free market are nuclear power plant Kozloduy and thermal power plants Maritsa Iztok 2, Maritsa 3, Varna and Bobov Dol. Although Bulgaria's energy market was officially liberalised a year ago, the big consumers are slow to emerge from NETC's shadow and the power plants are reluctant to take risks. NETC has opposed the forthcoming legislative changes, fearing they will sap revenues while compromising the reliability of energy supplies. The SEWRC will keep a register of power traders and their sales in surplus of the quota. The sector is also discussing an idea to expand the regulator's oversight to include export trasnactions as well. In October, Bulgaria, together with Romania, Serbia and Montenegro, Bosnia and Herzegovina, Albania and Greece, signed an agreement establishing a common energy market in Southeast Europe, which will be run by a regulatory council including representatives of the countries' energy watchdogs. The council will settle disputes concerning the use of powerlines and the outcome of export tenders. Currently, NETC's exports are not governed by explicit rules, though the power grid operator claims that it complies with the best European practices.
Source: Dnevnik (06.12.2005)

Thermal power plant (TPP) Maritsa Iztok 2 and nuclear power plant (NPP) Kozloduy will each have 35% of Bulgaria's liberalised power market by June 2006 under a decision of the energy regulator on the volume of electricity that producer will be allowed to deliver directly to eligible industrial consumers with an annual intake of up to 20gWh. Even after the completion of the ongoing investment programs at Maritsa Iztok 2 and Kozloduy, the output of the two power stations will remain competitive price-wise on the regional market. The regulator also decided to cap off at 2.4 mln mWh the volume of electricity that will be sold on the liberalised segment which admitted TPPs Maritsa Iztok 2, Maritsa 3, Varna, Bobov Dol and Rousse, NPP Kozloduy, 13 eligible consumers and 2 power traders. The regulator will no longer allocate volume quotas from 2007 when the whole power market will be open to competition. After 2007, the regulator will set only the charges that will be paid to the transmission grid operator.
Source: Dnevnik (09.12.2005)

Privileged Consumers to Buy 2.429m mWh by End-June 2006 Privileged consumers will have bought 2.429 million mWh by end-June 2006, State Energy and Water Regulation Commission forecasts. The entities tat meet the legal requirements to be 'privileged consumers' in Bulgaria are only ten at present, the six independent power producers are struggling to gain some them for clients. The large electricity producers may generate more than 14 billion mW by then. The largest is the country's nuclear power plant Kozloduy, followed by the thermal power plant Maritsa East.
Source: Pari (20.12.2005)