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From Bulgaria

02.10.2013 17:25

South Stream Construction in Bulgaria Set for End-2013, Despite Delays

Minister Stoinev suggested that the government has been considering to request a re-negotiation of the interest rate of the planned loan that the state-owned Bulgarian Energy Holding will obtain from Gazprom for the construction of the pipeline on Bulgarian territory

AUTHOR: Lyudmila Zlateva

© south-stream.info

There are still strong chances that the first sod of the Bulgarian section of South Stream gas pipeline will take place by the end of the year, despite setbacks, Bulgarian energy minister Dragomir Stoinev told journalists after meeting his Serbian colleague Zorana Mihajlovic in Sofia on Sept. 30.

Stoinev re-confirmed the schedule after opposition leader and former prime-minister Boiko Borisov earlier insisted that the government and the socialists leader Sergey Stanishev personally reveal “the real reason for South Stream’s delay”.

Possible Gazprom loan negotiation

Minister Stoinev explained that the government is yet to deal with inherited setbacks from previous governments, insisting that a project such as South Stream is not to be dealt with hastily before its financial model is made clear. Stoinev suggested that the government has been considering to request a re-negotiation of the interest rate of the planned loan that the state-owned Bulgarian Energy Holding will obtain from Gazprom for the construction of the pipeline on Bulgarian territory. The current interest rate for the USD 3.3 billion Bulgarian stretch is set at 8%.

Stoinev however insisted that despite blind posts in the project’s financial model, South Stream is yet to boost the employment in the region, creating opportunities for local contractors and securing loads for indebted state-owned cargo railway operator BDZ Tovarni Prevozi, which saw its market share shrink from over 80% to a mere 50% in recent years.

South Stream will not hinder Serbian-Bulgarian interconnector

According to Serbian energy minister Zorana Mihjlovic the construction of South Stream will not have a negative impact on the planned reversive flow gas interconnector between Bulgaria and Serbia which should become operational in 2017.

Mihjlovic stressed that both Bulgaria and Serbia should look forward to implementing both projects in order to improve their energy securities. Both countries rely on a single pipeline for importing Russian gas.

A partial relief to Varna citizens

South Stream will not damage the Bulgarian seacoast and it will not be visible from Pasha Dere beach where it is planned to emerge from the sea ashore, Oleg Aksyutin from South Stream Transport said in an interview for local newspaper Pressa Daily.

Earlier Varna citizens protested the route of the planned pipeline due to noise and air pollution concerns.