Austrian energy company EVN will pay 32.1 million euro for the Plovdiv heating utility, Privatisation Agency (PA) head Todor Nikolov said.

EVN would acquire 100 per cent of the company, Focus news agency reported.

PA and EVN signed the privatisation contract on July 12 2007.

PA deputy executive director Dimitar Doichinov said that EVN was an extremely suitable buyer.

According to the agreement, severe penalties will be paid if any of the parties fail to carry out their commitments.

EVN will invest seven million euro in the heating company of Plovdiv. The Austrian company already owns the electricity companies in Plovdiv and Stara Zagora.