Bulgaria Keeps Spending Money on Burgas-Alexandroupolis Project Company

Bulgaria’s Finance Ministry will allocate BGN 100 000 from its own budget to a capital hike of the project company created for the implementation of the suspended Burgas-Alexandroupolis oil pipeline project.

Bulgaria’s Council of Ministers approved the expenditure on April 8, according to a publication of Trud daily.

According to a media statement of the Finance Ministry, as cited by Trud daily, the money is necessary for the maintenance of the company, which is 100% state-owned.

In 2014 the project company paid nearly BGN 98 000 in salaries to four members of its staff.

One month ago the Finance Ministry reshuffled its 3-strong management body.

The construction of the Burgas-Alexandroupolis oil pipeline was stopped through a decision of the government in end-2011.

In the beginning of 2013, Bulgaria adopted a law on renouncing the agreement between Bulgaria, Russia, and Greece on the oil pipeline.

The project company has run up losses of BGN 5.185 M since its establishment in 2007.

Currently the capital of the company stands at BGN 15.2 M.

The Bulgarian project company was established for Bulgaria’s participation in the Dutch-registered Trans-Balkan Pipeline B.V.

None of the other participants in Trans-Balkan Pipeline B.V, including Russia and Greece, has so far stated officially that they are quitting the project.

Bulgaria intends to initiate a lawsuit for the voluntary dissolution of the company, according to the Finance Ministry.

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