UK’S Ealing Studios, one of the unsuccessful bidders for the privatisation of Boyana Film Studios, has offered to be granted a concession for the studios.
Patrick Newman, Ealing representative, told the Bulgarian service of the BBC on November 18 that they submitted their proposal in an open letter to Prime Minister Sergei Stanishev. Ealing said they were ready to discuss with Bulgarian filmmakers a strategy for the future development of Boyana Film.
Earlier this year, the Privatisation Agency (PA) selected US company Nu Image as winner in the tender for the privatisation of Boyana Film. An appeal against the decision was lodged in the country’s highest court, blocking all claims against the choice of Nu Image.
The privatisation procedure, however, has been constantly criticised for lack of transparency and for allegations of favouring Nu Image. The US company has been present in Bulgaria for some years, shooting scores of mostly low-profile productions.
Nu Image placed the highest bid - 12.2 million leva - for 95 per cent in Boyana Film in the tender held in February. It pledged to invest a further 30.5 million leva to upgrade the studio’s facilities.
In the process of decision making and decision appealing, Bavaria Film - another unsuccessful candidate for the studios - claimed that Nu Image had been selected as winner in the tender only on the basis of its financial offer, while Bavaria Film had also offered to back the development of the movie-making industry in Bulgaria as a strategic commitment, one of the requirements for the candidates. The German company challenged the PA’s decision, citing conflicts of interest and non-observance of Boyana Film’s privatisation strategy.
The bone of contention is not only the filmmaking facility in the outskirts of Sofia, but also its very attractive land, which reportedly costs at least 350 million euro.
The deal is further obstructed by restitution claims of landowners in the area, which say that 85 per cent of the land on which the studios stand is theirs.
Culture Minister Stefan Danailov said on September 21 that he had sent a letter to Stanishev, asking for reconsideration of the deal with Nu Image.
Danailov said he did not oppose the privatisation of Boyana Film but would insist on a different format. Granting a 35-year concession contract for the film studios was also an option, said Danailov.
Filmmakers have demanded termination of the privatisation procedure. According to Boyana Film’s former executive director Evgeni Mihailov, who resigned in October together with the rest of the management, granting a concession in the centre is the best way to protect the state’s interests.
Article 4 of the Act on Concessions does not mention any film studios or related property that could be granted by such a contract. It stipulates, however, that other sites, in addition to the mineral resources, waters, coastlines, railway infrastructure, airports and others, could become subject to concession agreement under other laws.
It is doubtful that Parliament, with its busy EU accession schedule, would find time for adopting the needed legislation soon.
Meanwhile, it was announced on November 21 that Prosecutor General Nikola Filchev had received a report from Nu Image that PA executive director Todor Nikolov had failed to fulfil his duties. Although Nu Image won the tender, the deal has not yet been concluded because of the appeal by Bavaria Film, in spite of the supreme court’s appeal-revoking decision, Nu Image said.
The draft contract for the acquisition of 95 per cent of Boyana Film was endorsed in August. Nu Image accepted all conditions and guarantees that the state demanded from the buyer.
