site.btaUPDATED Energy Ministry Budget to Be Increased by BGN 1.5 Bln

The budget of the Ministry of Energy will be increased by BGN 1.5 billion, Energy Minister Zhecho Stankov told journalists after Wednesday's meeting of the Council of Ministers. These funds will be used to increase the capital of the Bulgarian Energy Holding (BEH).

“We have adopted a decision of the Council of Ministers, which specifies the steps for increasing the state's shareholding in BEH,” Minister Stankov added.

The capital increase is related to the updated medium-term budget forecast for 2025-2028 and does not affect the deficit in any way, said the Minister.

Over the past few years, the Bulgarian energy sector has been exclusively a donor of funds, including funds used to purchase grain that Bulgarian citizens never saw, he added. This BGN 1.5 billion will help BEH and its companies implement their investment programme. In the medium term alone, the projects planned by BEH are worth over BGN 15 billion. This billion and a half will be directed directly towards repairing the damage caused over the years to the hydroelectric units of the Chaira Pumped Storage Hydro Power Plant, Minister Stankov said. Of the four hydroelectric units, one is currently operational, two are undergoing rehabilitation, and wo will have to be completely replaced. Repair work is being carried out on part of the power plants of the National Electric Company, he added.

"Over 700 km of the electricity system operator's and gas operator's networks will be rehabilitated, replaced, and newly built," Minister Stankov added. These funds will also be used for investments in Units 5 and 6 [of the Kozloduy Nuclear Power Plant] to bring them up to the necessary condition to ensure the security of energy supplies to all consumers in the country. Last but not least, the project, which is at the top of the government's agenda as extremely important: the construction of Units 7 and 8. With these funds, we continue to support the thesis that Bulgaria will be the first country in Europe to have operational AP 1000 reactors, by Westinghouse, and the state will continue to provide the necessary funds to the project company to ensure the construction of this new power plant," added Minister Stankov.

The investments to be made in BEH's subsidiaries are primarily aimed at increasing the company's revenues, which in the future will again ensure that these companies will have good profits and, through dividends, will be able to contribute funds to the state budget, which in turn will reach the people through the investment programs of the municipalities, he added.