EVN to Own Majority Share of New Bulgarian Hydropower Plant

The Arda river nearby south-eastern Bulgarian town of Kardzhali. Photo by BGNES.

Austrian energy company EVN is going to own 70% of the Gorna Arda hydropower station to be constructed in south-eastern Bulgaria, the other 30% remaining in Bulgaria's National Electric Company (NEK).

This important development was announced Monday evening in Vienna, after the two companies stroke a deal over the construction and exploitation of the hydropower station during Bulgarian PM Boyko Borisov's official visit to Austria.

Previously NEK was owning 70% of the project, with a EVN – Alpine Bau consortium set to hold the remaining 30%, previously owned by Turkish Ceyhan Holding. Nevertheless, Alpine Bau withdrew in May.

Monday's development thus present a significant restructuring of the venture.

EVN will have to pay BGN 1.4 M for its new share and the capital of the joint venture is going to be increased.

The shares of the two companies might change in the future by mutual agreement.

Commenting upon the event, Borisov and EVN CEO Burkhart Hoffer said that construction may start early 2012, with a deadline for technical specifications set at December 31, 2010.

Borisov also stated he hopes around 4-5000 new workplaces can be opened up in connection with the new hydropower plant, while EVN has committed to at least 3000. A requirement to use Bulgarian contractors for the project as extensively as possible was included.

The Bulgarian PM and EVN representatives said that the project will turn out to be less expensive than initially expected – EUR 400 M down from EUR 500 M.

Borisov called upon companies to be involved in the project not to offer or accept unwarranted payments, implying he will not tolerate corruption.

The Gorna Arda hydropower is planned to have an electricity production capacity of 160 MW.

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