site.btaBEH Terminates Open Tenders for Selection of Investment Consultant, Financing Institution

BEH Terminates Open Tenders for Selection of Investment Consultant, Financing Institution

Sofia, November 18 (BTA) - The Bulgarian Energy Holding (BEH)
announced on its website on Wednesday that it terminated
procedures launched on September 3 for an investment consultant
and a financing institution.

BEH said it "terminated an open tender with pre-selection for
the selection of an investment consultant for the issuance of
corporate bonds, and an open tender with pre-selection for the
selection of a financing institution(s) for raising a
loan/syndicated loan."

On November 12, Energy Minister Temenouzhka Petkova told
Parliament's Energy Committee and Committee on supervision of
the energy and water regulator that BEH would decide on that day
 to terminate the procedure for selection of bank institutions
which can provide a loan for dealing with intercompany
obligations in the energy sector. Instead, direct negotiations
would be held in the next two or three weeks with the banks
which showed an interest in the procedure.

The National Electricity Company (NEK) needs the loan to pay off
 its debt of nearly 900 million leva to US-owned AES Maritza
East 1 TPP and ContourGlobal Maritsa East 3 TPP, which
themselves owe close to 350 million leva  to the Maritza East
Mines. This will make possible the entry into effect of an
agreement on a 100 million leva annual reduction of the price
that NEK pays the US-owned TPPs for availability.

Twelve of the world's largest banks have shown interest on
condition the loan is government-guaranteed. BEH and the Energy
Ministry will negotiate with them to provide the required
financial resources of 650 million euro.