site.btaDeputy Prime Minister Donchev: New Concessions Bill Protects Interests of State

Deputy Prime Minister Donchev: New Concessions Bill Protects Interests of State

Sofia, October 11 (BTA) - A discussion on "Transparency and Effectiveness of Concessions in Bulgaria" was held here on Tuesday, organized by the Confederation of Employers and Industrialists in Bulgaria and the "Ikonomika" magazine.

Addressing the forum Deputy Prime Minister Tomislav Donchev said that the new concessions bill corresponds to the business logics and protects the interests of the State. The Deputy PM went on to say that the reform in the sector is underpinned by three laws: on public procurement, on the absorption of EU funding, and the concessions bill. Donchev noted that the first feedback from the enforcement of the two laws that were first enacted (on public procurement, and on the absorption of EU funding) is extremely positive, both from contracting authorities and from bidders. In order to bring the reform to the end, the new concessions bill is to be passed, he said, noting that politically speaking, the bill is faced with the greatest number of challenges.

Donchev said that there are sustainable good examples of concessions in the extraction of subsurface resources and in respect of some services, but such examples are lacking in respect of a larger concession in construction. He explained this with the absence of investor trust and of readiness and maturity of the State to undertake such a complex concession, which in turn he attributed to flawed legislation.

Donchev argued that the new law is good because it attempts to codify diverse legislation consolidating varying areas or sub-areas into a single logically-built text that spells out clear rules which are to be followed by everyone. He said also that the law is much closer to the logics of the real life and provides chances to implementing all possible scenarios for partnership. In Donchev's words, the old law was too bureaucratic.

Commenting the oil and natural gas prospecting in the Black Sea, Donchev said that it will take another four or five drilling attempts to determine the oil and natural gas reserves in the Khan Asparouh block. All preliminary information is mere speculation, added Donchev, speaking to reporters ahead of the discussion.

Donchev and Energy Minister Temenouzhka Petkova reacted to reports that exploration efforts have failed to find deposits of oil and natural gas in the block. Donchev denied such information. He said that the prospectors should make the first comments. Donchev said that he had information but he wouldn't make it public.

Petkova said that the companies are assessing the findings from the first drilling attempt and there is no other information. She added that the prospectors haven't announced that they are withdrawing from exploration.

On the topic of concessions, Petkova said that there are 511 effective concessions for extraction of subsurface resources. Concession royalties in January-September 2016 stood at 127 million leva, against 74 million leva in 2015.

Petkova said that a big setback for legal operators in the sector is the illegal extraction of resources. Last year eleven alerts were made for illegal extraction. The respective entities were issued statements for wrongdoing, penalty decrees, and some cases were referred to the prosecuting magistracy.

Addressing the forum, Tourism Minister Nikolina Angelkova said that preparations are being made to award concessions on 60 seaside beaches. Work is also underway in respect of beaches whose concessions expire this or next year.