FINMIN TO CONTROL STAKE IN BURGAS-ALEXANDROUPOLIS

Finance ministry to buy regional ministry's share in Technoexportstroy

The finance ministry will take over the control on Bulgaria's interest in Burgas-Alexandroupolis oil pipeline, it emerged after a cabinet meeting on Wednesday. The stake of the ministry of regional development and public works in Technoexportstroy, which presents Bulgaria in the project, will be transferred to the finance ministry, regional minister Rosen Plevneliev said. The cabinet will take its final decision on the operation next Wednesday. As much as BGN 50,000 will be transferred from the republican budget to the regional ministry for the stake.

Reasons

The transfer of the stake is aimed at consolidating the state's position, said Plevneliev, commenting on the motives for the decision. Bulgaria owes EUR 4.690 million to the engineering company that will build Burgas-Alexandroupolis. Another EUR 1.225 million is due for the first quarter of 2010. Next week finance minister Simeon Dyankov will explain how the dues will be paid, Plevneliev said.

Manoeuvres

Upon taking office, prime minister Boyko Borisov was categorical that the Burgas-Alexandroupolis pipeline will not be built unless there are full guarantees for the environment along the project's route. No progress has been made so far on the environment impact assessment. The government is firm that it will not come up with a decision on the project's implementation before an environment impact assessment is prepared according to the highest international standards, Plevneliev pointed out. No such documentation has been filed yet, he added.

It is not clear either how Bulgaria will pay its installment of nearly EUR 5 million, given the decreasing budget revenue. The transfer of the project to the finance ministry to a certain degree explains why Bulgarian Development Bank's (BDB's) Dimana Rankova was included in the management of Trans Balkan Pipeline, the Bulgarian engineering representative in the project. Shareholder control in state-owned BDB is exercised by the finance minister. Therefore the possibility of BDB's injecting funds in the project should not be ruled out.