site.bta Bulgarian Energy Holding Unlikely to Get Back its 140 Million Leva from Corpbank

Bulgarian Energy Holding Unlikely to Get Back its 140 Million Leva from Corpbank

Veliko Turnovo, Northern Bulgaria, September 8 (BTA) - Energy
Minister Temenouzhka Petkova predicted on Tuesday it is little
likely that the Bulgarian Energy Holding will be able to recover
 its 140 million leva from the failed Corporate Commercial Bank
(Corpbank), and this will have an adverse impact on the entire
energy sector.

Petkova said that the financial deficit of the National
Electricity Company (NEK) amounts to 3.7 billion leva, including
 2.3 billion leva in unreimbursed expenses for the projects for
the Belene nuclear power plant and the Tsankov Kamuk
hydroelectric power complex. About 1.4 billion leva of the
deficit has resulted from the current regulatory policy which
makes NEK buy electricity at higher prices than its own selling
rates.

Russian gas giant Gazprom has not expressed in writing its
official definitive position about the future of the South
Stream gas pipeline project, which is why the Bulgarian
government cannot say what will happen, the Minister went on to
say.

Petkova was in Veliko Turnovo to review one of three projects
financed under the Energy Efficiency and Renewable Energy
Programme, supported by the EEA and Norway Grants. The programme
 has seen the Energy Ministry sign 20 million leva worth of
contracts with 32 municipalities. Two kindergartens and a
residential home for the elderly in Veliko Turnovo will be
renovated on 211,000 leva in funding until 2017, Mayor Daniel
Panov said.

Earlier in the day, the Energy Minister visited the central town
 of Gabrovo to review other projects approved for funding under
the EEA/Norway-backed Energy Efficiency and Renewable Energy
Programme.

Discussing government checks at the three main electricity
distributing companies in Bulgaria, Petkova said the check at
CEZ is over, and the one at Energo-Pro is only just beginning.
The results so far show that electricity equipment has been
serviced, and knocked-down power transmission lines and outworn
installations have been replaced. The inspectors are making
recommendations about woodland clearings for power transmission
lines. The checks will be completed at the end of September and
the findings will be publicized.