News and Articles related to Town of Bobov dol
Current date: 2010-02-09 08:18

Bulgarian Tycoon Expectedly Acquires Bobov Dol Power Plant

Consortium Energia MK AD of Bulgarian businessman Hristo Kovachki have acquired the Bobov Dol thermal power plant for the price of BGN 100M without actually bidding for it, being the only candidate to reach the auction. The other competing company Minna Kompania EOOD was disqualified, as it did not pay the auction guarantee of BGN 5 M.

Experts say that even if Minna Kompania participated, the result would have been the same, as the company is also linked to Mr Kovachki.

Although Kovachki does not have a share in Minna Kompania, its manager Nikifor Vangelov is deputy chairperson of Municipal Bank supervisory board and is on the management team of supermarket chain Evropa, both owned by Kovachki.

Consortium Energia has vowed to build two additional 200-megawatt units in the plant in Southwestern Bulgaria in order to reach a total capacity of 1000 megawatts, as well as to invest in sulphur filtering systems. In addition to the sulphur filtiering systems, the buyer takes on the responsibility to align all company`s activities so that they correspond to the European Common Law decrees about the monitoring and the preservation of the environment by providing the necessary investments.

The buyer is also mandated to secure the purchase of Bulgarian coal of a quantity no less than 1 750 000 tons per year.
Before entering into effect the deal must be approved by the Privatization`s Agency Monitoring Board.

Kovachki`s company also owns several coalmines in the region near the power station.