After a long delay, the construction of the Upper Arda hydroelectric cascade may start in two weeks.
According to Plamen Ivanov, governor of the Kurdjali district, the National Electricity Company (NEC) and Road State Agency is set to begin construction. A total of 30 million leva has been allocated from the state budget for the project. The government is expected to announce within the next two weeks which construction company will handle the contract.
The Upper Arda hydropower company was established as a result of an agreement on co-operation in power generation and infrastructure signed on November 4, 1998 between the governments of Bulgaria and Turkey. The company was set up to finance, build and work the Upper Arda cascade of power stations. The project included the rehabilitation of the existing dams at the Gorna Arda River near the border with Turkey, building a new water cascade and operating it. The power stations have a combined capacity of 170 MW, and the investment in the facility amounts to $220 million.
The Upper Arda company held a general meeting of shareholders on March 29 and 30. The BTA reported that, during the meeting, Turkey’s Ceylan Holding, the company currently in charge of executing the project, refused the proposal of Bulgaria’s NEC, to sell its shares in the Upper Arda hydropower company at face value plus seven per cent annual interest rate. Ceylan also rejected NEC’s proposal to dissolve the joint venture.
After the Upper Arda company’s capital was raised last year, NEC held a 69.9 per cent stake in it and Ceylan owned 30.1 per cent.
Ceylan Insaat, a subsidiary of Ceylan Holding, was granted a concession on a site, which is part of the Gorna Arda cascade, but failed to prove its financial and technical capability to execute the project. For this reason, the government has expressed interest in contracting construction out to another company.
The U.S. construction company Bechtel has expressed readiness to start work on the Upper Arda hydroelectric cascade if the Oxford consortium is approved as executor of the project and signs a contract with the NEC. Bechtel signed a contract with Oxford on March 14 this year.
Oxford consortium includes V.R. Oxford Trading Ltd., South African Umhlaba Ltd., ABSA Bank of South Africa and Turkish Gunsayll Construction & Trade Ltd.
“The Oxford Consortium is a candidate for execution of the hydroelectric cascade Upper Arda, and it can start construction works in 90 days after signing of a contract with NEC,” said Vladimir Karolev, executive director of the Bulgarian Consultative Company (BCC), on Sunday. The BCC is authorised to represent the interests of the consortium before the Bulgarian institutions and companies.
On March 29, the consortium received confirmation from ABSA Bank that they were ready to give a credit of $30 million for the reconstruction of the existing three electric stations in Upper Arda upon Oxford signing a contract with NEC, and an additional $200 million for the construction of three new hydro systems – in Madan, Ardino and Saritsa.
According to Plamen Ivanov, governor of the Kurdjali district, the National Electricity Company (NEC) and Road State Agency is set to begin construction. A total of 30 million leva has been allocated from the state budget for the project. The government is expected to announce within the next two weeks which construction company will handle the contract.
The Upper Arda hydropower company was established as a result of an agreement on co-operation in power generation and infrastructure signed on November 4, 1998 between the governments of Bulgaria and Turkey. The company was set up to finance, build and work the Upper Arda cascade of power stations. The project included the rehabilitation of the existing dams at the Gorna Arda River near the border with Turkey, building a new water cascade and operating it. The power stations have a combined capacity of 170 MW, and the investment in the facility amounts to $220 million.
The Upper Arda company held a general meeting of shareholders on March 29 and 30. The BTA reported that, during the meeting, Turkey’s Ceylan Holding, the company currently in charge of executing the project, refused the proposal of Bulgaria’s NEC, to sell its shares in the Upper Arda hydropower company at face value plus seven per cent annual interest rate. Ceylan also rejected NEC’s proposal to dissolve the joint venture.
After the Upper Arda company’s capital was raised last year, NEC held a 69.9 per cent stake in it and Ceylan owned 30.1 per cent.
Ceylan Insaat, a subsidiary of Ceylan Holding, was granted a concession on a site, which is part of the Gorna Arda cascade, but failed to prove its financial and technical capability to execute the project. For this reason, the government has expressed interest in contracting construction out to another company.
The U.S. construction company Bechtel has expressed readiness to start work on the Upper Arda hydroelectric cascade if the Oxford consortium is approved as executor of the project and signs a contract with the NEC. Bechtel signed a contract with Oxford on March 14 this year.
Oxford consortium includes V.R. Oxford Trading Ltd., South African Umhlaba Ltd., ABSA Bank of South Africa and Turkish Gunsayll Construction & Trade Ltd.
“The Oxford Consortium is a candidate for execution of the hydroelectric cascade Upper Arda, and it can start construction works in 90 days after signing of a contract with NEC,” said Vladimir Karolev, executive director of the Bulgarian Consultative Company (BCC), on Sunday. The BCC is authorised to represent the interests of the consortium before the Bulgarian institutions and companies.
On March 29, the consortium received confirmation from ABSA Bank that they were ready to give a credit of $30 million for the reconstruction of the existing three electric stations in Upper Arda upon Oxford signing a contract with NEC, and an additional $200 million for the construction of three new hydro systems – in Madan, Ardino and Saritsa.
