The international project company in charge of building and operating Bourgas-Alexandroupolis oil pipeline will pick a financial consultant on October 16-17, Stefan Gounchev, board chairperson of the Bulgarian company partnering in the project, told Monitor newspaper on October 7.

The Supervisory Board of Trans Balkan Pipeline BV will choose among four bidders. Societe Generale, Lazard and Citigroup were sifted from a pool of nine banks on July 30-31 in London. Later, the Greek side, owner of 24.5 per cent of the project, insisted on adding Calyon to the list of contestants.

In a September 13 interview with Focus agency, Gounchev warned that the financial consultant selection might run a delay because the Russian party had outright sided with Societe Generale and had attempted to superimpose its decision onto its Greek and Bulgarian partners. Since the Bulgarian side would want to pick the consultant, which best responded to the requirements set out by the Bulgarian project company’s economic consultant, it would vote against the proposal, Gounchev said.

“Outright selection of Societe Generale would violate the decision taken by the Supervisory Board in London,” Gounchev said. “It said that the consultant should be selected out of a shortlist of banks.”

At a meeting in Athens in early September, the Board of Directors of Trans Balkan Pipeline BV allegedly requested to rank the shortlisted companies without considering the requirements put up by the Bulgarian side and its economic consultant, according to Gounchev. Eventually, the Russian side came up with a single-handed decision to present for Supervisory Board approval only Societe Generale.

If despite Gounchev’s concerns the financial consultant is picked next week, Trans Balkan Pipeline BV will proceed with carrying out a comprehensive financial analysis of the project, as will finalise the project’s feasibility study.

Bulgaria, through its tie-up between Bulgargaz Holding and Technoexportstroy, holds 24.5 per cent of the project.