THE STATE HAS TRANSFERRED TO NEC A LOAN FROM EIB
The National Electricity Company (NEC) will be utilizing the EUR60MN loan, allocated to Bulgaria by the European Investment Bank (EIB). The credit is in support of the Bulgaria-Energy II project for rehabilitation in the electric power system. It is implemented through joint financing with state-guaranteed loans from the European Bank for Reconstruction and Development (EBRD) and the EIB, and NEC's own funds. The project is worth a total of EUR153MN, of which EUR101MN will come from loans. The contract for the EUR60MN credit between Bulgaria and the EIB was ratified by Parliament in the beginning of February 2002. On Thursday (November 27) the Cabinet approved a special agreement with NEC, under which the credit has been transferred to the latter. After the contract enters into force, NEC will entitled to draw tranches from the EIB and will be effecting payments under the project. The orders for drawing money shall be approved by the Council of Ministers. NEC, on its part, is obliged to fulfull in due time its liabilities to the investment institution. In case of delay of the repayment installments, the State shall be entitled to a compensation, amounting to the entire size of the expenses it has made. Meanwhile, the ministers have authorized their colleague - the Energy minister Milko Kovachev - to hold negotiations and sign an agreement with the World Bank for a USD300,000 grant. The money is earmarked for financing the establishment of the Bulgarian Fund for Energy Efficiency. The money from the fund will be spent on the implementation of projects in the sphere of energy efficiency and restorable energy sources.