site.btaNEK Gets Deadline Extension for Paying Its Dues to Maritsa East 1 and 3 Thermal Power Plants

NEK Gets Deadline Extension for Paying Its Dues to Maritsa East 1 and 3 Thermal Power Plants

Sofia, March 15 (BTA) - The deadline until which the National Electricity Company (NEK) has to pay its dues to the Maritza East 1 and Maritsa East 3 thermal power plants has been extended, Energy Minister Temenouzhka Petkova told journalists on Tuesday. Petkova did not specify the length of the extension. She expressed her optimism that NEK will be able to obtain the loan it needs to pay its liabilities to the two US-owned plants. "I think the whole procedure for securing a loan for NEK will be successful," she said.

The Bulgarian Energy Holding (BEH), of which NEK is a subsidiary, has reached agreement on an up to 650 million euro bridge-to-bond loan with a consortium of Banca IMI S.p.A. - London Branch, Bank of China Limited - Luxembourg Branch and J.P. Morgan Securities. The proceeds of the loan will settle NEK's one billion leva debts to the Maritza East 1 and Maritsa East 3 thermal power plants which, in turn, will pay the 350 million leva they owe to the state-owned Maritsa East Mines. Subsequently, NEK will be able to pay a lower availability price to the two coal-fired plants.

Petkova said: "The two plants have seen that the loan procedure is unfolding positively and there are banks willing to provide the money. The fact that eight global banks, forming two consortiums, participated in the bidding procedure was a test passed successfully by the Bulgarian energy sector."

She said negotiations are now underway with the consortium which was selected to secure the funding sought by BEH. "I believe the parameters offered are within the normal limits," she said, expressing hope that the negotiations will be completed in about 10 days and then the sides will sign an agreement.