site.btaAd Hoc Committee to Look Into Privatization, Planned Sale of CEZ Bulgaria

Sofia, March 14 (BTA) - At its plenary sitting on Wednesday, Parliament supported with 174 votes in favour and one abstention the Left wing's proposal to set up an ad hoc committee which is to look into the facts about the privatization and planned sale of Czech energy group CEZ's assets in Bulgaria. The ad hoc committee will have fifteen members (three per parliamentary group) and will work for one month.

The move comes in the wake of the political turmoil triggered by CEZ's announcement that it had decided to sell its Bulgarian electricity distribution business to an obscure local company, Pazardjik-based Inercom Bulgaria. While the selling price of the assets has not been formally disclosed, media reports set it at 342.5 million euro. The Bulgarian Government is aspiring to acquire a participating interest in CEZ Bulgaria, arguing that it is a strategic company relevant to national security. According to CEZ Supervisory Board Chairman Vaclav Pasec, if the Bulgarian State acquires the electricity distribution company, this will cause a legal problem due to the ongoing international arbitration proceeding CEZ started against Bulgaria in July 2016.

The newly established ad hoc committee will be chaired by Socialist Zhelyo Boychev. The other members of the committee are: Tasko Ermenkov and Kroum Zarkov of BSP for Bulgaria; Delyan Dobrev, Valentin Nikolov and Dimiter Lazarov of GERB; Peter Petrov, Nikolay Alexandrov and Alexander Sabanov of United Patriots; Ramadan Atalay, Sergey Kichikov and Elhan Kulkof of the Movement for Rights and Freedom (MRF); Polina Tsankova, Plamen Hristov and Albena Naydenova of Volya.

Socialist MP Dragomir Stoynev explained that the reason behind his parliamentary group's proposal were the harsh reactions and fears of over 2 million electricity consumers over the forthcoming change of CEZ Bulgaria's owner under unclear circumstances and funding. In his words, Parliament as the supreme authority cannot remain an impassive witness to the events in a sector as strategic as the energy one.

The initial proposal of BSP for Bulgaria was for an ad hoc committee of ten MPs to look into the planned sale of CEZ's assets in Bulgaria, but at the proposal of the United Patriots group the number of members was increased to 15, and at the proposal of Dimiter Lazarov MP of GERB the committee's name was extended to also include CEZ Bulgaria's privatization.

Ramadan Atalay said that the MRF are in favour of the new ad hoc committee but disagree with the inclusion in its activity of the facts about the company's privatization. The extended name of the ad hoc committee seems to be sending certain messages to all those who are of enterprise and can contribute to the development of Bulgarian economy, he argued prior to being elected on the committee. The National Assembly will be investigating the planned sale of a foreign company, he noted.

GERB Floor Leader Tsvetan Tsvetanov said that his party is not worried by a possible parliamentary debate on the topic, which has already been held in other committees.