site.btaAES Bulgaria will Pay Maritza East Mines as Soon as It Receives Overdue Receivables from NEK

AES Bulgaria will Pay Maritza East Mines as Soon as It Receives Overdue Receivables from NEK

Sofia, August 26 (BTA) - Once AES Bulgaria receives full payment
 of National Electricity Company (NEK) arrears, which currently
amount to approximately 500 million leva, it will immediately
cover its liabilities to the Maritsa East mines, which currently
 amount to approximately 60 million leva, AES Bulgaria Executive
 Director Olivier Marquette said, quoted in a company's press
release.

He stressed that the constructive dialogue between the Bulgarian
 authorities and AES was fundamental to reach and sign the
amendment to the Power Purchase Agreement (PPA) with NEK on
August 14. "This outcome supports the government efforts to
attract foreign investments to the national economy," the press
release reads.

AES Bulgaria recalls that the amended PPA has received all
necessary approvals from relevant bodies. "The decrease in
capacity price by 14 percent will become effective upon Maritza
receiving full payment of arrears. This will result in annual
savings for NEK of about 50 million leva, and a cumulative
savings of about 550 million leva over the remaining term of the
 PPA, which expires in 2026," the press release reads.
   
On August 20, the ContourGlobal Maritza 3 coal-fuelled power
plant said that it will pay up its debt to the Maritsa East
mines as soon as it receives its dues from NEK, which amount to
388 million leva. The power plant's obligations to the mines
amount to 189 million leva. To make the PPA effective, NEK
should ensure the necessary funds to pay its debt to the power
plant.