site.btaVertical Gas Corridor Project to Receive BGN 248.9 Mln in State-Guaranteed Loans

The State will guarantee BGN 248.9 million in loans for Bulgartransgaz EAD’s Vertical Gas Corridor project, the Government information service said on Wednesday.

At its regular Wednesday sitting, the Council of Ministers approved draft guarantee agreements between Bulgaria and Investbank AD, and Bulgaria and United Bulgarian Bank AD to finance the Expansion of Bulgartransgaz’s Gas Transmission Infrastructure for the Implementation of the Vertical Gas Corridor Initiative. The initiative involves the transmission system operators of Bulgaria, Greece, Romania, Hungary, Slovakia, Ukraine and Moldova. 

The loans, to be disbursed by December 15 will partially cover investment costs. Repayment is due within five years after January 1, 2027, following a grace period.

The project envisages capacity expansion at the Kulata/Sidirokastro interconnection point in the direction from Greece to Bulgaria and the Negru Voda/Cardam point in the direction from Bulgaria to Romania. It is part of the ten-year network development plan of the European Network of Transmission System Operators for Gas, as well as Bulgartransgaz’s ten-year development plan.

Under a March 14, 2024 National Assembly decision, financing is to be secured through a capital increase of Bulgartransgaz and loan funding backed by state guarantees.

The Vertical Gas Corridor project is seen as strategic for the security of gas supply in Bulgaria and Southeastern Europe, boosting reliability, diversification and the development of a competitive, integrated regional gas market.