site.btaABV Party, Gergiovden Movement Ask Energy Ministry about Negotiations with Toshiba

ABV Party, Gergiovden Movement Ask Energy Ministry about Negotiations with Toshiba

Sofia, June 5 (BTA) - The ABV Party and the Gergiovden Movement will send an application for access to public information to Energy Minister Temenouzhka Petkova and Prime Minister Boyko Borissov on June 6 concerning a visit to Japan by an Energy Ministry delegation, the negotiations held and protocols signed there.

This was announced at a news conference on Sunday by ABV deputy leader Roumen Petkov and Gergiovden Chairman Dragomir Stefanov.

Earlier this week Petkov asked if the Energy Ministry had held talks with Toshiba about the construction of a new reactor of the Kozloduy nuclear power plant. Stefanov and Petkov claim the protocols show that certain steps have been taken, so the Ministry should say if a public procurement procedure has been held and why, if not.

The two will refer the matter to the European Commission because all other potential participants have been excluded if the law has been skirted.

Petkov and Stefanov asked why the minutes of the meeting were not posted officially on the Ministry's website.

Stefanov said the protocols showed the Bulgarian Energy Ministry highly appreciated Toshiba's work so far, but it was not clear what the corporation had done and how much it was paid for it. It is also evident that the Ministry needs assistance in analysing Unit 2 of the Maritsa East 2 thermal power plant and asked Toshiba for help, although it is not the manufacturer. It is not clear what called for direct negotiations with Toshiba on rehabilitation of the mechanical part of the Chaira pumped storage power station.

ABV and Gergiovden will ask for information on the loan taken by the Bulgarian Energy Holding (BEH) to pay the debts to the US-owned AES Maritza East 1 and ContourGlobal Maritsa East 3. The information should specify what criteria were applied in the selection of the bank or banks, and how much the loan costs.

As the loan exceeds one billion leva, the two parties will ask for a monthly breakdown of the internal indebtedness of the BEH subsidiaries.

ABV and Gergiovden will also ask for information on the management of the now abandoned Belene nuclear power plant project.

Reacting to ABV's plan to refer what it claims is a violation of the Public Procurement Act to the European Commission, Energy Minister Temenouzhka Petkova said no procurement procedure had been launched because no commitments were made to Toshiba. Talking at a news conference, she said ABV and Gergiovden's allegations were "manipulative" and aimed to cause confusion in society.

Petkova explained that a Bulgarian delegation visited Japan under a 2012 Memorandum of Cooperation, which says that any meeting held in accordance with it is not legally binding.

Petkova said the results of the government's work in the energy sector were visible but the clear vision for its development were not to every politician's liking. The European Commission has taken note of the positive results of stabilizing the sector, she said.

Regarding the loan BEH took for the National Electric Company (NEK) to pay its debts to the two US-owned power plants, Petkova said the power purchase agreements with them were signed in 2001 and a number of annexes were signed between 2002 and 2009 making additional commitments: NEK's receivables were pledged and the State provided letters of support. If NEK had not paid the two plants, the State would have had to pay 3 billion leva in damages, said Petkova.

As to the choice of banks which issued the loan, Petkova said ABV and Gergiovden should read the Public Procurement Act carefully instead of threatening to take the matter to the European Commission. "BEH does not fall within the ambit of that law. There are established rules for its spending and they have been observed," said the Minister.

Commenting on allegations that the loan would push up the price of electricity, she said that only the lending interest is recognized as an expenditure and it is lower than the cut in the preferential prices agreed with the US-owned power plants. Petkova added that the agreements with them would again be reviewed in the context of the full liberalization of the electricity market.

The Energy Minister expressed surprise that the need for legal protection in the arbitration case concerning the Belene nuclear power plant project was called into question. "This is a commercial dispute between two companies and it is only too natural to seek adequate legal protection. If anyone does not want our interests protected, let them say so," she said.

Regarding the possible construction of a new unit on the site of the Kozloduy nuclear power plant, Petkova reiterated the government's firm and consistent position that the parameters of a new unit were laid down in the government programme. It says that such a project can be implemented only if no state guarantee is required, if there is a strategic investor, and if there is no agreement on feed-in tariffs.