site.btaCabinet Approves State Investment Loans and Guarantees for 2025

On Wednesday, the Cabinet approved state investment loans and guarantees for 2025. As part of the budget procedure for 2025, ministries were required to submit proposals for state investment loans by April 15, 2024. The Ministry of Finance confirmed receiving one proposal from the Ministry of Energy.

The Cabinet's decision means no approval of new investment projects for state loans in 2025.

In the same meeting, the Cabinet also approved the issuance of state guarantees for new loan agreements for Bulgartransgaz EAD, totalling BGN 625 million in 2025. This amount is set aside to fund the investment project related to implementation of the Vertical Gas Corridor concept, namely for spatial planning, investment design, procurement of the necessary materials and equipment, construction and commissioning of new sites for expansion of the gas transmission infrastructure of Bulgartransgaz EAD, part of the initiative of the gas transmission operators of Bulgaria, Greece, Romania, Hungary, Slovakia, Ukraine and Moldova.

The projects aim to transport additional volumes of natural gas, observing state aid laws. They include increasing the natural gas transmission capacity at the interconnection point Kulata/Sidirokastro from Greece to Bulgaria; increasing the natural gas transmission capacity at the Negru Voda/Kardam interconnection point from Bulgaria to Romania; and high-pressure gas transmission infrastructure to supply consumers in the East Maritsa region.

The first two projects aim to increase interconnection capacities from Greece to Bulgaria and from Bulgaria to Romania, supporting the Vertical Gas Corridor concept for two-way natural gas transmission between Greece, Bulgaria, Romania, Hungary, and countries that joined the initiatives in early 2024, Ukraine, Moldova and Slovakia.

The third project will utilize added capacity to develop the internal gas transmission network, providing broader access to natural gas. This will facilitate the introduction of lower emission fuels, reducing greenhouse gas emissions from thermal power plants and other energy users. The new infrastructure will be available to all users, including coal-fired power plants.