Q: Mr Shiliashki, the Committee of Energy has prepared a draft law for the energy sector and a strategy about the development of the sector of energy. What is the optimal structure of Bulgarian energy from your point of view?
A: I want to point out that the structure of the energy sector in terms of production capacities ,that generation of electricity distribution and transmission, district heating, is relatively well structured, especially as far the power sector is concerned. We have achieved a pretty good level in complies with the new requirements for generation, transmission and distribution. Here I would like to emphasise that 38-40% of the electricity produced in Bulgaria comes from nuclear facilities. Around 36% of the electricity is produced from domestic coal. 10% is coming from hydro- capacities. We also have industrial power plants that are producing both electricity and heat. Production and distribution of natural gas is also included in the sector as well as the gasification of the households and production of coal for energy purposes . So this is basically the structure and we consider that especially in the power sector we reached the requirements of European standards.
Q: Which are the strong points in the Bulgarian energy sector and why?
A: This is precisely what I emphasised a while ago when I pointed out that especially our power sector is so well structured. As far the district heating is concerned , especially in the large cities we have pretty well developed district heating systems. In cities where we do not have district heating we are now moving towards the gasification of the households and modern methods of local heating. In coal mining we give great importance to the Maritsa-East Complex. There is being mined lignite coal and we have reserves for 50-60 years from that coal. We are still using these power stations: Maritsa-East 1 , Maritsa-East 2, Maritsa-East 3, that are producing cheap electricity based on domestically mined coal. This is precisely that Complex that we are intending to rehabilitate and are planning on constructing a new replacement capacity in Maritsa-East
1. It will be done in two stages: first stage will cover a facility of 600 MW and subsequently a second one will be built-of 300 MW. This together with the nuclear plant in Kozlodui which consists of 4 smaller units which are VVR-440 reactors and two new units of
1000 MW reactors , are actually the main generators of electricity.
Q: How do you intend to raise money for the modernisation of these plants?
A: Now that it is already a year during which the
Democratic Forces have been in power and having
achieved a political,economical and financial stability,
that created good conditions for us to start laying
the foundations for restructuring the sector in
order to create competitive internal energy market
in complies with the requirements of Agenda-2000
and also with the priorities laid down in our accession
to the European Union. Having achieved that stabilisation
we started to work on that energy draft law which
has been coordinated with all the ministries and
institutions of EU. Now it is being reviewed by
the Council of Ministry. In the beginning of 1998
we also worked out a strategy for the development
of this sector. It covers three stages : 2001, 2005,
2010. We have set out some development markers up
to 2020 . That strategy is ,of course, in complies
with the energy balance over these years and it
takes into consideration the energy needs of this
country based on the least cost plan and energy
efficiency programs. A Special priority is given
to our energy projects along with the environmental
and nuclear safety aspects. On that bases we have
also elaborated an investment program which will
be very active starting 1998 and on especially after
the negotiations we had with the International Monetary
Fund, the World
Bank and representatives from EU. This program
was elaborated in greater details and made more
comprehensive and together with the laws that were
amended: The Concession law , the Law on foreign
investments, we created that special environment
for foreign investments to be made in the sector. |
Q: What were concretely the results of your last visit to the United States?
A: I think that the statement of the State Department and our Deputy Prime Minister Mr.Boshkov show a positive estimation by the World Bank and other institutions because during my visit with the State Department and visits with other institutions I presented my position and the realistic plans for the development of the energy sector in complies with the economic growth over the next years and the policy we are pursuing within the Balkan region. It is the same in the European Union: when someone is presenting a good and realistic program it will be inevitably be approved and accepted.
Q: Did you personally meet some representatives from some US companies?
A: During those three days I had so many meetings at their power facilities as well as at our Embassy in Washington, that actually I could not go around to see the sights. In addition to that official visit during which I represented our strategy on the next day I had a meeting at the World Bank’s headquarters together with the international financial association to the Bank . We reviewed specific possibilities for making investments in the energy sector in Bulgaria in particular projects. We also had a meeting at the American Agency for International Development. There we reviewed the structure reform making it more active over the next years. They appreciated very much that specific program we had worked out. I also had a meeting at Texim Bank and we discussed a concrete project there together with representatives of Delfus International who are part of Bank One . We also reviewed some specific projects targeting investments in Bulgaria in this sector . We had quite a few meetings at the Embassy in Washington where we met a lot of companies which are interested in prospecting for oil and gas in the Black Sea shelf, also some legal firms and constancy companies who are interested in working within the Bulgarian energy sector. It was a very informative , comprehensive and complete program in the USA .
Q: As a final issue ,Mr Shiliashki , Keeping in mind that you are reaching 2.5 million readers, what will be your final message to them?
A: My message to those readers who, I understand, are business people is that I would like to tell them that indeed we have created economic and political stability and the program of our Government: 2001 and especially within the energy sector is a very straightforward program and sets very clearly the trends for investing in the sector. And we expect a large number of investors and we have quite a few of them here already. We ,of course, are looking forward to many other coming to Bulgaria but the interest should be on a mutual bases.
|
BULGARIA, 
