Bulgartransgaz EAD concluded a contract for a state-guaranteed loan with the Dutch ING Bank N.V., through ING Bank N.V. - Sofia branch, for financing of the interconnector Bulgaria-Serbia. This became possible after during its meeting the Council of Ministers approved the draft guarantee agreement between the Republic of Bulgaria and ING Bank N.V., through ING Bank N.V. - Sofia branch. The document was signed by the Executive Director of Bulgartransgaz EAD Mr. Vladimir Malinov and by Ms. Marina Kobakova on behalf of ING Bank NV - Sofia branch.
The necessary financial resource for IBS implementation is planned to be provided through grant funding from the Operational Programme "Innovation and Competitiveness" 2014-2020, the Connecting Europe Facility (CEF), long-term loan financing secured by a state guarantee and equity capital of Bulgartransgaz EAD.
The proposed loan with state guarantee for the project amounts up to EUR 49,071,661. The appropriation period is until 31.12.2023, and the repayment period - 5 years from the expiry of the one-year grace period.
On Bulgarian territory, the interconnector includes construction of a new gas pipeline from an existing Bulgartransgaz EAD facility near the town of Novi Iskar to the border with the Republic of Serbia. Its pipeline network has DN 700 diameter and about 62 km length on Bulgarian territory. For full project implementation, construction is envisaged of two automatic gas regulation stations, one gas measuring station, as well as two gas pipeline branches to the towns of Slivnitsa and Dragoman. Following its completion, the capacity of the new gas infrastructure will be 1.8 bcm/y with possibility for reverse flow.
According to the Executive Director of Bulgartransgaz EAD, Mr. Vladimir Malinov, the implementation of interconnector Bulgaria-Serbia will contribute to increasing the reliability of natural gas supply in the region. "The Interconnection will increase market integration, enhance competitive conditions on the gas market and trade development at regional level and in the common energy market of the European Union," he added.
The loan funds can be used after ratification of the guarantee agreement by the National Assembly of the Republic of Bulgaria.