Bulgaria's Mineral Water Concessions Raise Negligible Revenues

Bulgarian municipalities are not particularly excited about the taking over of mineral water cocnessions. Photo by BGNES

The concession of about 40 mineral water springs brought only BGN 2.5 M in 2010, according to Environment Ministry data.

The Ministry has said it expects an increase of the mineral water revenues up to BGN 3.06 M in 2010, as cited by the Pari Daily.

A total of 16 “deposits” of mineral water (including about 40 springs) have been granted to concessionaires with nine of them having more than one concessionaire.

Over the weekend, the Environment Minister Nona Karadzhova announced the intention of her institution to authorize local authorities to offer on concession about 60 mineral water springs (out of a total of 102 springs in Bulgaria), which are currently not being utilized.

According to the National Association of Municipalities in the Republic of Bulgaria, granting control over mineral water deposits to the local authorities will have little positive effect on their budgets.

The municipalities claim that the unused springs are only 45, that they are located along rivers, and that the state has not been able to offer them on concession because of their unfavorable locations. In addition, the municipalities will be required to invest into researching each spring and maintaining the proper infrastructure which might actually drain their budges rather than boost them.

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