site.bta Deputy PM: Only A Fraction of South Stream Capital Has Been Spent

Deputy PM: Only A Fraction of  South Stream  Capital Has Been Spent

Sofia, February 12 (BTA) - Unlike other unfortunate energy projects, the situation with the South Stream gas pipeline is better because of the fact that only some 55 million leva of the project's capital of 446.4 million leva has been used and the rest is still available, Bulgarian Deputy Prime Minister Tomislav Donchev said during Question Time in Parliament Friday.

The expenditures that have been made so far as part of the project went through the joint project company, South Stream Bulgaria AS, in which the Bulgarian Energy Holding (BEH) and Gazprom have equal shares of 50 per cent.

From 2010 to present, BEH have participated in capital increases which can be seen in the Commercial Register, Donchev said. The BEH contributions vary, being lower in the period between 2010 and 2013. The biggest was made on August 18, 2014, when 191 million leva was contributed to the capital of the project company. The contributions add up to 198.8 million leva. 24.4 million leva was contributed to the reserve fund of the project company.

Donchev further explained that some of the expenditures that have been made were not just for operational costs but also for assets: real rights,easement, plans and others, all of which, under certain circumstances, could be used for other initiatives for expansion or modernization of the gas transmission grid in Bulgaria.

In Donchev's words, from the moment the project became dubious, BEH has tried to minimize its expenditures and only operational costs were alowed for projects which had started.

He also said that intense talks are underway and a new meeting is due next week with the European Commission on the construction of the Balkan gas distribution centre. One of the possible sources of gas for this distribution centre are one, two or more Russian pipelines through the Black Sea.

Donchev said that Bulgaria has borne the brunt of the failure of South Stream considering that it was the first country along the route and, politically as well as economically, it ended up being in the epicentre of events.

"The efforts at the moment are to find that rational grain which makes economic sense and which can be seen shooting up without any conflict with the European legislation," said the Deputy Prime Minister.