EVN, NEK Mull Reducing Bulgarian Hydropower Project Cost

The contract for the Gorna Arda hydropower project was signed in Vienna, in the presence of Bulgaria's Prime Minister, Boyko Borisov (r). Photo by BGNES

The Austrian energy company EVN and the Bulgaria's National Electric Company (NEK) are considering several scenarios in the development of the Gorna Arda hydropower station, the companies announced.

The agreement for 70% ownership of EVN in the hydropower station to be constructed in south-eastern Bulgaria, and 30% remaining in Bulgaria's National Electric Company (NEK) was signed on Monday in Vienna during the official visit of Prime Minister, Boyko Borisov, to the Austrian capital.

The NEK CEO, Krasimir Parvanov, said Tuesday the possibilities of starting the construction of the first two Water Power Plants (WPT) in the towns of Ardino and Madan are being examined while EVN confirmed they are focusing on building the first facility near Ardino.

The first stage is to begin no earlier than 2012 and will last 4-5 years, according to EVN. The current estimates are for a cost of EUR 500 M, but both companies vow to bring it down to at least EUR 400 M by optimizing construction works per Borisov's recommendations.

The technical design project is to be ready in 2010 – currently NEK and EVN are reworking the old plan, dating from the 80s, in order to reduce the price, and adhere to new environmental requirements since part of the construction lands are included in NATURA 2 000. Both companies are upbeat they will receive a positive environmental assessment.

EVN further announce they plan to attract EU funding. The construction includes road infrastructure and facilities to be used for sports and tourism.

NEK inform the Turkish Ceyhan Holding, which was a partner in the project with 30%, have officially withdrawn any claims against Bulgaria in the International Court of Arbitration in Paris and have agreed to transfer their shares to EVN and the other Austrian company Alpine Bau. Alpine Bau, however, also gave up on the project 2 months ago, making EVN and NEK the sole owners.

The agreement signed Monday provided for increasing the capital by BGN 1.39 M to be paid by EVN and used for study of the terrain and project design.

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