Russian company RAO EES might give up the purchase of the thermal power plant in Varna. The reason is a contract that the power plant's administration signed with Siemens for the modernisation of the equipment. Because of the contract, Bulgaria's Privatisation Agency extended - for a fifth time - the deadline to conclude the deal. The last extension ends this week, Economy Minister Roumen Ovcharov said. Changes in the power plant will make a deal with the Russian company unprofitable for Bulgaria, Ovcharov said. According to the contract, the state has to pay 11 million euro to Siemens for the delivery of new equipment.
According to Economy Ministry sources, the chances for the conclusion of the deal are growing smaller. The finalisation of the deal has already been postponed by six months. RAO EES was selected as the buyer of the power plants in both Varna and Rousse. A decision by the Commission for the Protection of Competition prevented the sale of both, because this would have led to a monopoly on Bulgaria's energy market. The Privatisation Agency appealed against the decision leading to the delays in the conclusion of the deal, Sega newspaper reported.