Bulgaria Launches 3rd Attempt to Privatize Diplomatic Property Agency

Bulgarian MPs from the parliamentary economic committee have approved the removal of the state-owned Domestic Diplomatic Properties Agency (ADIS) from list of companies that cannot be privatized.

Other entities that are about to be removed from the "no-privatization" list are Audiovideo Orpheus and the Military Publishing House.

Responding to a question of business news portal investor.bg, the press office of the Privatization and Post-Privatization Control Agency refused to commit to forecasts about the revenues that the privatization of ADIS could fetch before Parliament votes conclusively on the measure.

ADIS' removal from the list of companies that are not subject to privatization is yet to be voted at first reading in Parliament.

It is too early to say whether the company will be sold at once or in stages.

ADIS closed 2010 with a profit of close to BGN 3.4 M, compared to a profit of was little over BGN 2.2 M for 2009, according to financial reports of the state-owned company.

In 2010 ADIS  managed to slash costs by as much as 60% to BGN 6.872 M .

At the same time, however, the company's revenues for 2010 plunged by over 50% to BGN 9.8 M, compared to BGN 20.8 M for 2009

The carrying value of the company's fixed assets amounted to BGN 10.6 M at the end of 2010, with land plots and buildings worth nearly BGN 9 M.

By December 31, 2010, ADIS had to manage investment properties with a carrying value of BGN 38.4 M under operating lease agreements.

The government of center-right ruling party GERB is the third to make an attempt to put up the company for sale despite the disagreement of the agency's principal, the Foreign Ministry and of opposition parties.

Several months ago, socialist MPs Petar Mutafchiev and Zahari Georgiev claimed that GERB's bids to privatize ADIS covered up vested interests and prepared the ground for real estate dealings.

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