Bulgartransgaz EAD published an Invitation to Tender for providing a bank financing in the form of a loan to finance Bulgartransgaz EAD investment costs with regard to a Project of Common Interest for the European Union (PCI) 6.8.3. Reverse Gas Interconnection Bulgaria-Serbia (IBS).
Within the procedure Bulgartransgaz EAD aims to attract EUR 49 million with a repayment term of 6 years. The funds will be used to finance and refinance costs under a signed contract No 5380/05.05.2020 for the implementation of the “Investment Design – Detailed Design Phase – Procurement of the necessary materials and equipment, construction and commissioning of a site: Gas Interconnection Bulgaria-Serbia on Bulgarian territory”.
Bulgartransgaz EAD shall provide a state guarantee to guarantee the liabilities, in accordance with the requirements of an Ordinance on the conditions to be met by investment projects financed with state loans and projects applying for financing with a state guarantee and the procedure for their examination.
By Decision No. 374/08.06.2022, the Council of Ministers approved the Bill Amending and Supplementing (BAS) the 2022 State Budget Act of the Republic of Bulgaria, providing for the possibility of issuing a state guarantee under loan agreements for Bulgartransgaz EAD investments. BAS of the State Budget Act was promulgated in a State Gazette - No. 52 of 5 July 2022.
According to Article 70a of the amended State Budget Act, within the current budget year, the Council of Ministers may issue state guarantees under new loan agreements for Bulgartransgaz EAD investments, in a total amount of up to the BGN equivalent of EUR 382 million subject to legislation in the field of state aid. The loans to Bulgartransgaz EAD for which the issuance of state guarantees is envisaged include EUR 49,071,661 in connection to PCI 6.8.3. Gas Interconnection Bulgaria-Serbia.
In addition, on 1 November 2022, by Decision No. 857, the Council of Ministers approved the draft Act Extending the Provisions of the 2022 State Budget Act of the Republic of Bulgaria. According to the adopted act, the Council of Ministers may issue state guarantees under the loan agreements provided for in Article 70a of the 2022 State Budget Act of the Republic of Bulgaria, which have not been implemented within the 2022 budget year, until the adoption of the 2023 State Budget Act of the Republic of Bulgaria, but not longer than three months. This period does not include the time during which there is no elected National Assembly.
Commercial Banks, International Financial Organizations operating on the territory of Bulgaria on the basis of concluded and ratified intergovernmental agreements and treaties and Government Funds may submit tenders to finance the project.
The deadline for the submission of tenders is by 5:00 pm on 9 December 2022.
The invitation together with the appendixes thereto is available here.
The appendixes in Word format are available here.