site.btaWorld Bank to Review Financial Position of Bulgarian Energy Sector

World Bank to Review Financial Position of Bulgarian Energy Sector

Sofia, August 7 (BTA) - The Bulgarian Energy Holding (BEH) signed a consulting service agreement with the World Bank during a ceremony in Sofia Friday in the presence of Energy Minister Temenouzhka Petkova.

Under the agreement, the World Bank will carry out a comprehensive review of the financial position of the Bulgarian energy sector and will recommend steps towards complete liberalization of the national electricity market by the end of 2015.

World Bank Resident Representative in Bulgaria Blaga Djourdjin, who signed the agreement on behalf of her institution, expressed hope that the timely signature of the agreement allows the bank to present its report quickly and effectively to help the Bulgarian government prepare its strategy for the sector's financial stabilization and liberalization.

BEH Chief Executive Jacklen Cohen said the agreement will create the basis to liberalize the Bulgarian electricity market, which will hopefully be accomplished very rapidly. He expects the World Bank to conduct an objective review of the sector's condition.

Energy Minister Temenouzhka Petkova said the BEH-World Bank agreement is very important because it concerns one of the top priorities of the Bulgarian government for the energy sector: the liberalization of the market. The agreement will make it possible to choose the best way to liberalize the market after several options are weighed.

The World Bank review will focus on the National Electricity Company (NEK) and its future condition after the market is liberalized. The bank is expected to suggest a compensatory mechanism to prevent NEK's financial deficit from increasing after the liberalization.

The term of the agreement is six months. After the first three months, the World Bank will submit an interim report, which will then be discussed between all stakeholders.