Several companies have already thrown their hats into the ring to be considered as advisers for the establishment of Bulgaria's energy holding, an Economy and Energy Ministry spokesperson told The Sofia Echo on May 7. However, the spokesperson would not disclose how many there were or which companies applied for the position.

The ministry announced the tender to choose a consultant that would advise it on setting up the energy holding, which would take over the state stakes in Maritsa Iztok mines, Maritsa Iztok II thermal power plant, state-owned gas distributor Bulgargas, power grid operator National Electricity Company and Kozloduy nuclear power plant on May 6.

The ministry plans to award an eight-month contract, worth about 800 000 leva without value-added tax, with the adviser tasked to prepare the ground, register the holding, outline a development strategy and suggest measures to improve the regulatory framework. It would also have to oversee the merger of the companies and propose a personnel efficiency plan.

Both local and foreign firms are allowed to take part in the competition, as well as consortiums and physical persons. The candidates have to present a bank guarantee of 8000 leva valid for 60 days, references for previous projects they have managed, their financial results for the past three years, and a list of their experts and their professional experience.

The deadline for submitting bids is June 10, with the ministry focusing on the cost of the offers.

The ministry tasked Deloitte Bulgaria to prepare a concept for the holding, and in March the Bulgarian Government approved the model for re-structuring the companies that will become part of the new company. The consultancy firm suggested it was carried out in two stages - first on an organisational and then on the financial level.

Deloitte's analysis showed that after the consolidation, the holding’s revenues would be 1.78 billion euro, while its assets would amount to four billion euro. The newly-established energy holding is seen in the future as one of the biggest structures of its kind in South-Eastern Europe.

Deloitte also warned that the merger would not lead to an immediate increase to the companies' credit ratings. According to the consultant, to achieve growth the company would need a transparent decision-making process, as well as avoid political appointments to its management.