CZECH company CEZ had realistic chances for obtaining the thermal power plant in Varna, Bulgarian Prime Minister Sergei Stanishev said on February 16. Stanishev led a Government delegation on a state visit to the Czech Republic on February 15-16.
“CEZ has shown interest in the privatization of several Bulgarian thermal plants,” Roumen Ovcharov, Bulgarian Economy and Energy minister, said after meeting with his Czech counterpart Milan Urban in Prague. According to Ovcharov, CEZ was interested in the plants in Varna, Plovdiv, Pernik and Shoumen.
CEZ has a history in the privatisation of the Varna thermal-power plant. Previously, CEZ had filed the second-best bid of 192 million euro for 67 per cent of the plant. Ranked first was the 390 million euro bid of the Russian company RAO UES, who eventually was withdrawn from the tender. The other candidates in the rally were Italy ‘s Enel, with a 151 million euro bid, and Greece ‘s PPC, with a bid at 132 million euro. Russia’s Gazprom has also expressed interest in the privatisation of the four thermal plants.
Gazprom is also an indirect majority owner in one of the three firms forming the Skoda Alliance consortium, the other two firms being controlled by CEZ.
The same day, Czech reporters quoted Stanishev as saying that CEZ had realistic chances for obtaining the plant in Varna.
CEZ, as part of the Skoda Alliance consortium, is also one of the candidates for the construction of the Belene nuclear power plant in Bulgaria. An offer for Belene’s construction has been also submitted by Russia’s Atomstroyexport.
During his visit, Stanishev received confirmations from the Czech leaders that Bulgaria will join the EU as scheduled on January 1 2007. Stanishev met cabinet members and business representatives who described Czech ties with Bulgaria as excellent and rapidly expanding.
Stanishev, together with his Czech counterpart Jiri Paroubek, attended the opening of a Bulgaria-Czech business forum. Thirty companies from the tobacco and textile sectors represented Bulgaria, with the Czech part by some of its most influential domestic companies such as CEZ, Skoda, AZD Praha, Energo-Pro, Alexandria CK, the Czech Export Bank and others. Stanishev urged Czech investors to invest in Bulgaria and expressed his satisfaction that the Czech Republic was the tenth largest foreign investor in Bulgaria.
Paroubek said that the tourism, energy and transport sectors in Bulgaria were of great interest for Czech investors.
After the forum, Ovcharov and Urban signed an agreement for amendment of the Investment Protection Treaty signed by the two countries in 1999.
