Bulgaria's new government has sealed
a letter of approval for the construction of the long-delayed
hydropower project at Gorna Arda river, the energy and economy minister
announced.
The move is a requirement for the wrapping up of the sale of a 30.1%
stake, owned by Turkey's CCG, part of the Ceylan conglomerate, to an
Austrian consortium between energy firm EVN and construction company
Alpine Bau.
Ceylan Holding is expected to withdraw its claim for EUR 75 M in
damages that it filed with the International Court of Arbitration
against the other member in the joint venture - Bulgaria's National
Electricity Transmission Company NEK.
The Turkish company was contracted to implement the project under an
electricity-for-infrastructure swap deal Bulgaria and Turkey signed in
1998. The launch of the hydropower construction was delayed after the
Turkish company ran into financial troubles.
The Gorna Arda hydropower project is expected to cost around EUR 500 M, which should be paid by the consortium.