Bulgaria to Set Up Giant Energy Company

Bulgaria to set up giant energy company

SOFIA, Feb. 13 (Xinhua) — The Bulgarian government decided to set up an energy holding that will be composed of gas company Bulgargaz, National Electric Company, Kozloduy nuclear power plant,Maritza-Iztok II thermal power plant and the Mini Maritza Iztok (Maritza Iztok mines), the government’s Information Service said onWednesday.

The consolidation of the five companies into the Bulgarian Energy Holding, one of the biggest energy companies in the region,is expected to be completed by the end of 2008. The assets of the holding will amount to 4 billion euro (6 billion U.S. dollars), its forecast annual profit is set at 1.8 billion euro.

The government will hold a 100 percent stake in the energy holding. The Energy and Economy Ministry will hold up to 75 percent stake in each of the five energy companies, while the minority shares, varying from 25 percent to 49 percent will be transferred to the newly established company.

The decision was made by the Political Council of the government last weekend. The consolidation’s main aims are to increase the competitiveness of the five companies in the regionaland the European market, enhance their effectiveness and the quality of energy services, optimize expenditures and management, ensure modern mechanisms for attracting investments, prepare them for listing on local and international stock exchanges and improvetheir credit ratings.

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